We consider Visa not too risky. Visa Inc owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.1601 which indicates Visa Inc had 0.1601% 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 Inc which you can use to evaluate future volatility of the company. Please validate Visa Semi Deviation of 0.9092, Coefficient Of Variation of 614.2 and Risk Adjusted Performance of 0.0441 to confirm if risk estimate we provide are consistent with the epected return of 0.1169%.
|Investment Horizon||30 Days Login to change|
Visa Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Visa will likely underperform.One Month Beta |Analyze Visa Inc Demand TrendCheck current 30 days Visa correlation with market (DOW)|
β = 1.1946
Projected Return Density Against MarketTaking into account the 30 trading days horizon, the stock has beta coefficient of 1.1946 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Visa will likely underperform. Additionally, Visa Inc has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
Taking into account the 30 trading days horizon, the coefficient of variation of Visa is 624.73. The daily returns are destributed with a variance of 0.53 and standard deviation of 0.73. The mean deviation of Visa Inc is currently at 0.5. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23