Correlation Between Visa and Bitkub Coin
Can any of the company-specific risk be diversified away by investing in both Visa and Bitkub Coin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and Bitkub Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Bitkub Coin, you can compare the effects of market volatilities on Visa and Bitkub Coin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Visa with a short position of Bitkub Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Bitkub Coin.
Diversification Opportunities for Visa and Bitkub Coin
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Visa and Bitkub is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Bitkub Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitkub Coin and Visa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Visa Class A are associated (or correlated) with Bitkub Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitkub Coin has no effect on the direction of Visa i.e., Visa and Bitkub Coin go up and down completely randomly.
Pair Corralation between Visa and Bitkub Coin
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.25 times more return on investment than Bitkub Coin. However, Visa Class A is 3.97 times less risky than Bitkub Coin. It trades about 0.25 of its potential returns per unit of risk. Bitkub Coin is currently generating about -0.16 per unit of risk. If you would invest 31,612 in Visa Class A on December 1, 2024 and sell it today you would earn a total of 4,659 from holding Visa Class A or generate 14.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 93.75% |
Values | Daily Returns |
Visa Class A vs. Bitkub Coin
Performance |
Timeline |
Visa Class A |
Bitkub Coin |
Visa and Bitkub Coin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Bitkub Coin
The main advantage of trading using opposite Visa and Bitkub Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Bitkub Coin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bitkub Coin will offset losses from the drop in Bitkub Coin's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |