Correlation Analysis Between Visa and Israel Index

This module allows you to analyze existing cross correlation between Visa and Israel Index. You can compare the effects of market volatilities on Visa and Israel Index 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 Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of Visa and Israel Index.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

Visa Inc  vs.  Israel Index

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Visa is expected to generate 1.69 times less return on investment than Israel Index. In addition to that, Visa is 1.39 times more volatile than Israel Index. It trades about 0.06 of its total potential returns per unit of risk. Israel Index is currently generating about 0.14 per unit of volatility. If you would invest  99,371  in Israel Index on October 13, 2019 and sell it today you would earn a total of  7,455  from holding Israel Index or generate 7.5% return on investment over 30 days.

Pair Corralation between Visa and Israel Index

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Visa and Israel Index

Visa Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index 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 are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of Visa i.e. Visa and Israel Index go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .