Visa Class A Stock Volatility

V Stock  USD 271.35  0.07  0.03%   
We consider Visa very steady. Visa Class A owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0288, which indicates the firm had a 0.0288% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Visa Class A, which you can use to evaluate the volatility of the company. Please validate Visa's Risk Adjusted Performance of 0.037, semi deviation of 0.9228, and Coefficient Of Variation of 1849.28 to confirm if the risk estimate we provide is consistent with the expected return of 0.0263%. Key indicators related to Visa's volatility include:
360 Days Market Risk
Chance Of Distress
360 Days Economic Sensitivity
Visa Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Visa daily returns, and it is calculated using variance and standard deviation. We also use Visa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Visa volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Visa's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Visa's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Visa can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Visa at lower prices. For example, an investor can purchase Visa stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Visa's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Visa Stock

  0.72BN Brookfield CorpPairCorr
  0.63BX Blackstone Group Earnings Call TomorrowPairCorr
  0.68CG Carlyle Group Financial Report 2nd of May 2024 PairCorr

Moving against Visa Stock

  0.62RC Ready Capital Corp Financial Report 13th of May 2024 PairCorr
  0.59DHIL Diamond Hill InvestmentPairCorr

Visa Market Sensitivity And Downside Risk

Visa's beta coefficient measures the volatility of Visa stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Visa stock's returns against your selected market. In other words, Visa's beta of 0.63 provides an investor with an approximation of how much risk Visa stock can potentially add to one of your existing portfolios. Visa Class A has relatively low volatility with skewness of -0.1 and kurtosis of 0.77. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Visa's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Visa's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Visa Class A Demand Trend
Check current 90 days Visa correlation with market (NYSE Composite)

Visa Beta

    
  0.63  
Visa standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.91  
It is essential to understand the difference between upside risk (as represented by Visa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Visa's daily returns or price. Since the actual investment returns on holding a position in visa stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Visa.

Using Visa Put Option to Manage Risk

Put options written on Visa grant holders of the option the right to sell a specified amount of Visa at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Visa Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Visa's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Visa will be realized, the loss incurred will be offset by the profits made with the option trade.

Visa's PUT expiring on 2024-04-19

   Profit   
       Visa Price At Expiration  

Current Visa Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $300.0-0.9140.00911242024-04-1926.95 - 30.4529.4View
Put
2024-04-19 PUT at $295.0-0.9040.010162024-04-1921.5 - 25.424.4View
Put
2024-04-19 PUT at $290.0-0.82210.0139932024-04-1917.0 - 20.418.35View
Put
2024-04-19 PUT at $287.5-0.99340.0026482024-04-1914.45 - 18.012.45View
Put
2024-04-19 PUT at $285.0-0.89850.02088422024-04-1912.2 - 15.2514.15View
Put
2024-04-19 PUT at $282.5-0.86640.02232432024-04-199.45 - 13.011.8View
Put
2024-04-19 PUT at $280.0-0.83580.033222772024-04-197.7 - 9.99.39View
Put
2024-04-19 PUT at $277.5-0.83410.040313572024-04-196.25 - 7.06.7View
Put
2024-04-19 PUT at $275.0-0.70820.053223262024-04-194.55 - 5.84.82View
Put
2024-04-19 PUT at $272.5-0.5610.057711462024-04-193.15 - 3.353.35View
Put
2024-04-19 PUT at $270.0-0.41470.05838842024-04-192.04 - 2.192.05View
View All Visa Options

Visa Class A Stock Volatility Analysis

Volatility refers to the frequency at which Visa stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Visa's price changes. Investors will then calculate the volatility of Visa's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Visa's volatility:

Historical Volatility

This type of stock volatility measures Visa's fluctuations based on previous trends. It's commonly used to predict Visa's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Visa's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Visa's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Visa Class A 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.

Visa Projected Return Density Against Market

Taking into account the 90-day investment horizon Visa has a beta of 0.6324 . This entails as returns on the market go up, Visa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Visa Class A will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Visa or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Visa's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Visa stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Visa Class A has an alpha of 0.0078, implying that it can generate a 0.0078 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Visa's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how visa stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Visa Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Visa Stock Risk Measures

Taking into account the 90-day investment horizon the coefficient of variation of Visa is 3472.06. The daily returns are distributed with a variance of 0.83 and standard deviation of 0.91. The mean deviation of Visa Class A is currently at 0.69. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
0.01
β
Beta against NYSE Composite0.63
σ
Overall volatility
0.91
Ir
Information ratio -0.01

Visa Stock Return Volatility

Visa historical daily return volatility represents how much of Visa stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 0.9137% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6265% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Visa Volatility

Volatility is a rate at which the price of Visa or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Visa may increase or decrease. In other words, similar to Visa's beta indicator, it measures the risk of Visa and helps estimate the fluctuations that may happen in a short period of time. So if prices of Visa fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for Next Year
Selling And Marketing Expenses1.5 BB
Market Cap333.3 B193.2 B
Visa's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Visa Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Visa's price varies over time.

3 ways to utilize Visa's volatility to invest better

Higher Visa's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Visa Class A stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Visa Class A stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Visa Class A investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Visa's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Visa's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Visa Investment Opportunity

Visa Class A has a volatility of 0.91 and is 1.44 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Visa Class A is lower than 8 percent of all global equities and portfolios over the last 90 days. You can use Visa Class A to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Visa to be traded at $284.92 in 90 days.

Very weak diversification

The correlation between Visa Class A and NYA is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and NYA in the same portfolio, assuming nothing else is changed.

Visa Additional Risk Indicators

The analysis of Visa's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Visa's investment and either accepting that risk or mitigating it. Along with some common measures of Visa stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Visa Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Visa as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Visa's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Visa's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Visa Class A.
When determining whether Visa Class A is a strong investment it is important to analyze Visa's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Visa's future performance. For an informed investment choice regarding Visa Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Visa Class A. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for Visa Stock analysis

When running Visa's price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.203
Dividend Share
1.94
Earnings Share
8.68
Revenue Per Share
16.386
Quarterly Revenue Growth
0.088
The market value of Visa Class A is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine if Visa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.