Correlation Between Visa and AGFiQ

Can any of the company-specific risk be diversified away by investing in both Visa and AGFiQ 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 AGFiQ 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 AGFiQ, you can compare the effects of market volatilities on Visa and AGFiQ 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 AGFiQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and AGFiQ.

Diversification Opportunities for Visa and AGFiQ

0.0

Correlation Coefficient

Visa  AGFiQ

Pay attention - limited upside

The 3 months correlation between Visa and AGFiQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and AGFiQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ 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 AGFiQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ has no effect on the direction of Visa i.e., Visa and AGFiQ go up and down completely randomly.

Pair Corralation between Visa and AGFiQ

If you would invest (100.00) in AGFiQ on January 28, 2024 and sell it today you would earn a total of  100.00  from holding AGFiQ or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Visa Class A  vs.  AGFiQ

Visa Class A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Visa is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

AGFiQ

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGFiQ has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AGFiQ is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Visa and AGFiQ

The main advantage of trading using opposite Visa and AGFiQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, AGFiQ 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 AGFiQ will offset losses from the drop in AGFiQ's long position.

The idea behind Visa Class A and AGFiQ pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.