Correlation Between Visa and Hexcel Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Visa and Hexcel Corp 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 Hexcel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Inc and Hexcel Corp, you can compare the effects of market volatilities on Visa and Hexcel Corp 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 Hexcel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Hexcel Corp.

Diversification Opportunities for Visa and Hexcel Corp

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Visa and Hexcel is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Visa Inc and Hexcel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel Corp 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 Hexcel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel Corp has no effect on the direction of Visa i.e., Visa and Hexcel Corp go up and down completely randomly.

Pair Corralation between Visa and Hexcel Corp

Taking into account the 90-day investment horizon Visa Inc is expected to under-perform the Hexcel Corp. But the stock apears to be less risky and, when comparing its historical volatility, Visa Inc is 1.54 times less risky than Hexcel Corp. The stock trades about 0.0 of its potential returns per unit of risk. The Hexcel Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,672  in Hexcel Corp on June 28, 2022 and sell it today you would earn a total of  1,620  from holding Hexcel Corp or generate 44.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Visa Inc  vs.  Hexcel Corp

 Performance (%) 
       Timeline  
Visa Inc 
Visa Performance
0 of 100
Over the last 90 days Visa Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Visa Price Channel

Hexcel Corp 
Hexcel Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hexcel Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Hexcel Corp is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Hexcel Price Channel

Visa and Hexcel Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Visa and Hexcel Corp

The main advantage of trading using opposite Visa and Hexcel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Hexcel Corp 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 Hexcel Corp will offset losses from the drop in Hexcel Corp's long position.
Visa vs. Kibush Capital Corp
The idea behind Visa Inc and Hexcel Corp 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.
Hexcel Corp vs. Kibush Capital Corp
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go