Correlation Between Visa and Vestis

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

Diversification Opportunities for Visa and Vestis

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Visa and Vestis is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Visa i.e., Visa and Vestis go up and down completely randomly.

Pair Corralation between Visa and Vestis

Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Vestis. But the stock apears to be less risky and, when comparing its historical volatility, Visa Class A is 2.71 times less risky than Vestis. The stock trades about 0.0 of its potential returns per unit of risk. The Vestis is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  502.00  in Vestis on October 6, 2025 and sell it today you would earn a total of  156.00  from holding Vestis or generate 31.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Visa Class A  vs.  Vestis

 Performance 
       Timeline  
Visa Class A 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Visa Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Visa is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Vestis 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vestis are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Vestis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Visa and Vestis Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Visa and Vestis

The main advantage of trading using opposite Visa and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.
The idea behind Visa Class A and Vestis 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.
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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