Visa Risk Analysis

Visa Inc -- USA Stock  

USD 113.41  0.05  0.0441%

We consider Visa not too risky. Visa Inc owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0655 which indicates Visa Inc had 0.0655% 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-eight technical indicators for Visa Inc which you can use to evaluate future volatility of the company. Please validate Visa Semi Deviation of 1.75, Coefficient Of Variation of 1937.2 and Risk Adjusted Performance of 0.0321 to confirm if risk estimate we provide are consistent with the epected return of 0.093%.
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 Trend
Check current 30 days Visa correlation with market (DOW)
β = 1.1931
Visa Large BetaVisa Inc Beta Legend

Visa Inc Technical Analysis

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 1.1931 . 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
 Predicted Return Density 
Taking into account the 30 trading days horizon, the coefficient of variation of Visa is 1526.42. The daily returns are destributed with a variance of 2.02 and standard deviation of 1.42. The mean deviation of Visa Inc is currently at 1.09. For similar time horizon, the selected benchmark (DOW) has volatility of 0.49
Alpha over DOW
βBeta against DOW=1.19
Overall volatility
 IrInformation ratio =0.09

Actual Return Volatility

Visa Inc accepts 1.4197% volatility on return distribution over the 30 days horizon. DOW inherits 0.4961% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 

Market Risk Breakdown

Visa Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Very low

30 Days Economic Sensitivity

Almost mirrors market

Total Debt

Visa Inc Total Debt History

Total Debt

Largest Trends

Visa Largest Period Trend
3.9  3.5%
Lowest period price (30 days)
1.09  0.97%
Highest period price (30 days)

Investment Outlook

Visa Investment Opportunity
Visa Inc has a volatility of 1.42 and is 2.84 times more volatile than DOW. 13% 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 13 (%) of all global equities and portfolios over the last 30 days. Use Visa Inc to protect against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of Visa to be traded at $112.28 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Visa will likely underperform.

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.