Correlation Between Visa and STRYKER
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By analyzing existing cross correlation between Visa Class A and STRYKER P 365, you can compare the effects of market volatilities on Visa and STRYKER 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 STRYKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and STRYKER.
Diversification Opportunities for Visa and STRYKER
Excellent diversification
The 3 months correlation between Visa and STRYKER is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and STRYKER P 365 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRYKER P 365 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 STRYKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRYKER P 365 has no effect on the direction of Visa i.e., Visa and STRYKER go up and down completely randomly.
Pair Corralation between Visa and STRYKER
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.26 times more return on investment than STRYKER. However, Visa is 1.26 times more volatile than STRYKER P 365. It trades about 0.08 of its potential returns per unit of risk. STRYKER P 365 is currently generating about -0.09 per unit of risk. If you would invest 31,319 in Visa Class A on September 24, 2024 and sell it today you would earn a total of 452.00 from holding Visa Class A or generate 1.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Visa Class A vs. STRYKER P 365
Performance |
Timeline |
Visa Class A |
STRYKER P 365 |
Visa and STRYKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and STRYKER
The main advantage of trading using opposite Visa and STRYKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, STRYKER 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 STRYKER will offset losses from the drop in STRYKER's long position.Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
STRYKER vs. AEP TEX INC | STRYKER vs. US BANK NATIONAL | STRYKER vs. Brightsphere Investment Group | STRYKER vs. Neurocrine Biosciences |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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