Correlation Between Visa and AKSO HEALTH

Can any of the company-specific risk be diversified away by investing in both Visa and AKSO HEALTH 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 AKSO HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Visa and AKSO HEALTH

0.1

Correlation Coefficient

Visa  AKSO HEALTH

Average diversification

The 3 months correlation between Visa and AKSO is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and AKSO HEALTH GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKSO HEALTH GR 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 AKSO HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKSO HEALTH GR has no effect on the direction of Visa i.e., Visa and AKSO HEALTH go up and down completely randomly.

Pair Corralation between Visa and AKSO HEALTH

Assuming the 90 days trading horizon Visa Inc is expected to under-perform the AKSO HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Visa Inc is 4.64 times less risky than AKSO HEALTH. The stock trades about -0.05 of its potential returns per unit of risk. The AKSO HEALTH GR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  120.00  in AKSO HEALTH GR on May 5, 2025 and sell it today you would earn a total of  21.00  from holding AKSO HEALTH GR or generate 17.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Visa Inc  vs.  AKSO HEALTH GR

Visa Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Visa Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Visa is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

AKSO HEALTH GR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AKSO HEALTH GR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, AKSO HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Visa and AKSO HEALTH

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

The idea behind Visa Inc and AKSO HEALTH GR 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.