Correlation Between Visa and NIIT
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By analyzing existing cross correlation between Visa Class A and NIIT Limited, you can compare the effects of market volatilities on Visa and NIIT 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 NIIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and NIIT.
Diversification Opportunities for Visa and NIIT
Pay attention - limited upside
The 3 months correlation between Visa and NIIT is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and NIIT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIIT Limited 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 NIIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIIT Limited has no effect on the direction of Visa i.e., Visa and NIIT go up and down completely randomly.
Pair Corralation between Visa and NIIT
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.31 times more return on investment than NIIT. However, Visa Class A is 3.26 times less risky than NIIT. It trades about 0.25 of its potential returns per unit of risk. NIIT Limited is currently generating about -0.35 per unit of risk. If you would invest 31,612 in Visa Class A on December 2, 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 | Significant |
Accuracy | 96.83% |
Values | Daily Returns |
Visa Class A vs. NIIT Limited
Performance |
Timeline |
Visa Class A |
NIIT Limited |
Visa and NIIT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and NIIT
The main advantage of trading using opposite Visa and NIIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, NIIT 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 NIIT will offset losses from the drop in NIIT's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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