Correlation Between Visa and Infrastrutture Wireless

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

Diversification Opportunities for Visa and Infrastrutture Wireless

-0.08

Correlation Coefficient

Visa  Infrastrutture Wireless

Good diversification

The 3 months correlation between Visa and Infrastrutture is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Infrastrutture Wireless Italia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastrutture Wireless 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 Infrastrutture Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastrutture Wireless has no effect on the direction of Visa i.e., Visa and Infrastrutture Wireless go up and down completely randomly.

Pair Corralation between Visa and Infrastrutture Wireless

Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Infrastrutture Wireless. In addition to that, Visa is 1.47 times more volatile than Infrastrutture Wireless Italiane. It trades about -0.25 of its total potential returns per unit of risk. Infrastrutture Wireless Italiane is currently generating about 0.16 per unit of volatility. If you would invest  1,033  in Infrastrutture Wireless Italiane on May 6, 2025 and sell it today you would earn a total of  21.00  from holding Infrastrutture Wireless Italiane or generate 2.03% return on investment over 90 days.

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

Visa Class A  vs.  Infrastrutture Wireless Italia

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.

Infrastrutture Wireless

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Infrastrutture Wireless Italiane are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Infrastrutture Wireless is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Visa and Infrastrutture Wireless

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

The idea behind Visa Class A and Infrastrutture Wireless Italiane 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.