Visa Risk Analysis

Visa Inc -- USA Stock  

USD 122.01  0.16  0.13%

Macroaxis considers Visa to be not too risky. Visa Inc owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0337 which indicates Visa Inc had -0.0337% of return per unit of risk over the last 1 month. Macroaxis philosophy towards measuring risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Visa Inc exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Visa Coefficient Of Variation of 32,015 and Risk Adjusted Performance of 0.003924 to confirm risk estimate we provide.
 Time Horizon     30 Days    Login   to change

Visa Market Sensitivity

Visa returns are very sensitive to returns on the market. As market goes up or down, Visa is expected to follow.
One Month Beta |Analyze Visa Inc Demand Trend
Check current 30 days Visa correlation with market (DOW)
β = 1.113
Visa llmost one BetaVisa Inc Beta Legend

Visa Inc Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Visa Inc Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Taking into account the 30 trading days horizon, the stock has beta coefficient of 1.113 . This entails Visa Inc market returns are very sensitive to returns on the market. As the market benchmark goes up or down, Visa is expected to follow. Moreover, Visa Inc has an alpha of 0.1983 implying that it can potentially generate 0.1983% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Taking into account the 30 trading days horizon, the coefficient of variation of Visa is -2969.99. The daily returns are destributed with a variance of 3.92 and standard deviation of 1.98. The mean deviation of Visa Inc is currently at 1.36. For similar time horizon, the selected benchmark (DOW) has volatility of 1.71
α
Alpha over DOW
=0.20
β
Beta against DOW=1.11
σ
Overall volatility
=1.98
Ir
Information ratio =0.0882

Actual Return Volatility

Visa Inc accepts 1.9792% volatility on return distribution over the 30 days horizon. DOW inherits 1.7077% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Visa Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Almost imposible

30 Days Economic Sensitivity

Almost mirrors market

Total Debt

Visa Inc Total Debt History

Total Debt

Largest Trends

Visa Largest Period Trend
 119.53 
  
 113.86 
5.67  4.74%
Lowest period price (30 days)
 124.74 
  
 125.72 
0.98  0.79%
Highest period price (30 days)

Investment Outlook

Visa Investment Opportunity
Visa Inc has a volatility of 1.98 and is 1.16 times more volatile than DOW. 18% of all equities and portfolios are less risky than Visa. Compared to the overall equity markets, volatility of historical daily returns of Visa Inc is lower than 18 (%) of all global equities and portfolios over the last 30 days. Use Visa Inc to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Visa to be traded at $128.11 in 30 days. Visa returns are very sensitive to returns on the market. As market goes up or down, Visa is expected to follow.

Visa correlation with market

Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and equity matching DJI index in the same portfolio.