Correlation Between Visa and IGATE Corp
Can any of the company-specific risk be diversified away by investing in both Visa and IGATE Corp 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 IGATE Corp 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 IGATE Corp, you can compare the effects of market volatilities on Visa and IGATE Corp 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 IGATE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and IGATE Corp.
Diversification Opportunities for Visa and IGATE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and IGATE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and IGATE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IGATE Corp 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 IGATE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IGATE Corp has no effect on the direction of Visa i.e., Visa and IGATE Corp go up and down completely randomly.
Pair Corralation between Visa and IGATE Corp
If you would invest 0.00 in IGATE Corp on January 20, 2024 and sell it today you would earn a total of 0.00 from holding IGATE Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Visa Class A vs. IGATE Corp
Performance |
| Timeline |
| Visa Class A |
| IGATE Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Visa and IGATE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and IGATE Corp
The main advantage of trading using opposite Visa and IGATE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, IGATE Corp 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 IGATE Corp will offset losses from the drop in IGATE Corp's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart HoldingsInc | Visa vs. Ally Financial |
| IGATE Corp vs. Primoris Services | IGATE Corp vs. Papaya Growth Opportunity | IGATE Corp vs. Nasdaq Inc | IGATE Corp vs. ZK International Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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