Correlation Between Visa and Intech Managed

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

Diversification Opportunities for Visa and Intech Managed

0.12

Correlation Coefficient

Visa  Intech Managed

Average diversification

The 3 months correlation between Visa and Intech is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Visa i.e., Visa and Intech Managed go up and down completely randomly.

Pair Corralation between Visa and Intech Managed

Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Intech Managed. In addition to that, Visa is 1.95 times more volatile than Intech Managed Volatility. It trades about -0.02 of its total potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.2 per unit of volatility. If you would invest  1,082  in Intech Managed Volatility on May 4, 2025 and sell it today you would earn a total of  90.00  from holding Intech Managed Volatility or generate 8.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Visa Class A  vs.  Intech Managed Volatility

Visa Class A

Risk-Adjusted Performance

Very Weak

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 latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Intech Managed Volatility

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intech Managed Volatility are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Intech Managed may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Visa and Intech Managed

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

The idea behind Visa Class A and Intech Managed Volatility 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.