Correlation Between Visa and PFA Invest

By analyzing existing cross correlation between Visa Inc and PFA Invest Udenlandske you can compare the effects of market volatilities on Visa and PFA Invest 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 PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and PFA Invest.

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Can any of the company-specific risk be diversified away by investing in both Visa and PFA Invest at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Visa and PFA Invest into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Visa and PFA Invest

-0.22
Correlation
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PI

Very good diversification

The 3 months correlation between Visa and PFIUDO is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and PFA Invest Udenlandske Obl in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Udenlandske 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 Inc are associated (or correlated) with PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Udenlandske has no effect on the direction of Visa i.e. Visa and PFA Invest go up and down completely randomly.

Pair Corralation between Visa and PFA Invest

If you would invest  18,176  in Visa Inc on April 28, 2020 and sell it today you would earn a total of  1,250  from holding Visa Inc or generate 6.88% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Visa Inc  vs.  PFA Invest Udenlandske Obl

 Performance (%) 
      Timeline 
Visa Inc 
33

Visa Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Inspite fairly abnormal primary indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.
PFA Invest Udenlandske 
00

PFA Invest Risk-Adjusted Performance

Over the last 30 days PFA Invest Udenlandske has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PFA Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Visa and PFA Invest Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.


 
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