Correlation Between Visa and Leverage Shares
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By analyzing existing cross correlation between Visa Class A and Leverage Shares 3x, you can compare the effects of market volatilities on Visa and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Leverage Shares.
Diversification Opportunities for Visa and Leverage Shares
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Leverage is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of Visa i.e., Visa and Leverage Shares go up and down completely randomly.
Pair Corralation between Visa and Leverage Shares
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.3 times more return on investment than Leverage Shares. However, Visa Class A is 3.3 times less risky than Leverage Shares. It trades about 0.11 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about -0.03 per unit of risk. If you would invest 22,902 in Visa Class A on September 26, 2024 and sell it today you would earn a total of 8,820 from holding Visa Class A or generate 38.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.73% |
Values | Daily Returns |
Visa Class A vs. Leverage Shares 3x
Performance |
Timeline |
Visa Class A |
Leverage Shares 3x |
Visa and Leverage Shares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and Leverage Shares
The main advantage of trading using opposite Visa and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.Visa vs. American Express | Visa vs. Upstart Holdings | Visa vs. Capital One Financial | Visa vs. Ally Financial |
Leverage Shares vs. UBS Fund Solutions | Leverage Shares vs. Xtrackers II | Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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