Correlation Between Visa and Bitget Token

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

Diversification Opportunities for Visa and Bitget Token

0.86

Correlation Coefficient

Visa  Bitget Token

Very poor diversification

The 3 months correlation between Visa and Bitget is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Bitget token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitget token 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 Bitget Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitget token has no effect on the direction of Visa i.e., Visa and Bitget Token go up and down completely randomly.

Pair Corralation between Visa and Bitget Token

Taking into account the 90-day investment horizon Visa is expected to generate 4.04 times less return on investment than Bitget Token. But when comparing it to its historical volatility, Visa Class A is 2.14 times less risky than Bitget Token. It trades about 0.16 of its potential returns per unit of risk. Bitget token is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  96.00  in Bitget token on September 2, 2024 and sell it today you would earn a total of  65.00  from holding Bitget token or generate 67.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	96.97%
Values	Daily Returns

Visa Class A  vs.  Bitget token

Visa Class A

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.

Bitget token

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitget token are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Bitget Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Visa and Bitget Token

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

The idea behind Visa Class A and Bitget token 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.