Correlation Analysis Between Visa and NQTH

This module allows you to analyze existing cross correlation between Visa and NQTH. You can compare the effects of market volatilities on Visa and NQTH 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 NQTH. See also your portfolio center. Please also check ongoing floating volatility patterns of Visa and NQTH.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

Visa Inc  vs.  NQTH

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Visa is expected to generate 1.23 times more return on investment than NQTH. However, Visa is 1.23 times more volatile than NQTH. It trades about 0.03 of its potential returns per unit of risk. NQTH is currently generating about -0.04 per unit of risk. If you would invest  17,627  in Visa on October 14, 2019 and sell it today you would earn a total of  314.00  from holding Visa or generate 1.78% return on investment over 30 days.

Pair Corralation between Visa and NQTH

0.38
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for Visa and NQTH

Visa Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and NQTH in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NQTH 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 are associated (or correlated) with NQTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NQTH has no effect on the direction of Visa i.e. Visa and NQTH go up and down completely randomly.
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See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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