Correlation Between Visa and CI Global
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By analyzing existing cross correlation between Visa Class A and CI Global Resource, you can compare the effects of market volatilities on Visa and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CI Global.
Diversification Opportunities for Visa and CI Global
Modest diversification
The 3 months correlation between Visa and 0P000070I2 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Resource has no effect on the direction of Visa i.e., Visa and CI Global go up and down completely randomly.
Pair Corralation between Visa and CI Global
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.81 times more return on investment than CI Global. However, Visa Class A is 1.23 times less risky than CI Global. It trades about 0.05 of its potential returns per unit of risk. CI Global Resource is currently generating about -0.01 per unit of risk. If you would invest 31,032 in Visa Class A on September 12, 2024 and sell it today you would earn a total of 206.00 from holding Visa Class A or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. CI Global Resource
Performance |
| Timeline |
| Visa Class A |
| CI Global Resource |
Visa and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CI Global
The main advantage of trading using opposite Visa and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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