Visa Risk Analysis And Volatility Evaluation

V -- USA Stock  

USD 141.33  0.68  0.48%

We consider Visa not too risky. Visa owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0449 which indicates Visa had 0.0449% of return per unit of risk over the last 1 month. Our philosophy towards measuring volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Visa which you can use to evaluate future volatility of the company. Please validate Visa Semi Deviation of 1.12, Coefficient Of Variation of 2180.73 and Risk Adjusted Performance of 0.0294 to confirm if risk estimate we provide are consistent with the epected return of 0.0411%.
 Time Horizon     30 Days    Login   to change

Visa Market Sensitivity

As returns on market increase, Visa returns are expected to increase less than the market. However during bear market, the loss on holding Visa will be expected to be smaller as well.
One Month Beta |Analyze Visa Demand Trend
Check current 30 days Visa correlation with market (DOW)
β = 0.794
Visa Small BetaVisa Beta Legend

Visa Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Visa 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, Visa has beta of 0.794 . This entails as returns on market go up, Visa average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Visa will be expected to be much smaller as well. Additionally, Visa has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Taking into account the 30 trading days horizon, the coefficient of variation of Visa is 2227.66. The daily returns are destributed with a variance of 0.84 and standard deviation of 0.92. The mean deviation of Visa is currently at 0.6. For similar time horizon, the selected benchmark (DOW) has volatility of 0.55
α
Alpha over DOW
=0.05
β
Beta against DOW=0.79
σ
Overall volatility
=0.92
Ir
Information ratio =0.07

Actual Return Volatility

Visa accepts 0.9162% volatility on return distribution over the 30 days horizon. DOW inherits 0.5397% 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

Follows market closely

Investment Outlook

Visa Investment Opportunity
Visa has a volatility of 0.92 and is 1.7 times more volatile than DOW. 8% of all equities and portfolios are less risky than Visa. Compared to the overall equity markets, volatility of historical daily returns of Visa is lower than 8 (%) of all global equities and portfolios over the last 30 days. Use Visa to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Visa to be traded at $148.4 in 30 days. As returns on market increase, Visa returns are expected to increase less than the market. However during bear market, the loss on holding Visa will be expected to be smaller as well.

Visa correlation with market

Very weak 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.
Also please take a look at World Market Map. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.