Correlation Between Visa and National Bank
Can any of the company-specific risk be diversified away by investing in both Visa and National Bank 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 National Bank 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 National Bank, you can compare the effects of market volatilities on Visa and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and National Bank.
Diversification Opportunities for Visa and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Visa i.e., Visa and National Bank go up and down completely randomly.
Pair Corralation between Visa and National Bank
If you would invest 31,478 in Visa Class A on December 28, 2024 and sell it today you would earn a total of 3,508 from holding Visa Class A or generate 11.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 83.33% |
Values | Daily Returns |
Visa Class A vs. National Bank
Performance |
Timeline |
Visa Class A |
National Bank |
Visa and National Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and National Bank
The main advantage of trading using opposite Visa and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Oils Soap |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |