This module allows you to analyze existing cross correlation between Alphabet and Visa. You can compare the effects of market volatilities on Alphabet and Visa 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 Alphabet with a short position of Visa. See also your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and Visa.
Given the investment horizon of 30 days, Alphabet is expected to generate 1.58 times less return on investment than Visa. In addition to that, Alphabet is 1.14 times more volatile than Visa. It trades about 0.1 of its total potential returns per unit of risk. Visa is currently generating about 0.18 per unit of volatility. If you would invest 13,533 in Visa on June 22, 2018 and sell it today you would earn a total of 566.00 from holding Visa or generate 4.18% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc and Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa and Alphabet 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 Alphabet are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa has no effect on the direction of Alphabet i.e. Alphabet and Visa go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.