Correlation Between Visa and CI Signature
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By analyzing existing cross correlation between Visa Class A and CI Signature Cat, you can compare the effects of market volatilities on Visa and CI Signature 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 Signature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CI Signature.
Diversification Opportunities for Visa and CI Signature
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and 0P0001FKWD is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CI Signature Cat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Signature Cat 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 Signature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Signature Cat has no effect on the direction of Visa i.e., Visa and CI Signature go up and down completely randomly.
Pair Corralation between Visa and CI Signature
Taking into account the 90-day investment horizon Visa is expected to generate 1.93 times less return on investment than CI Signature. But when comparing it to its historical volatility, Visa Class A is 1.32 times less risky than CI Signature. It trades about 0.09 of its potential returns per unit of risk. CI Signature Cat is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,131 in CI Signature Cat on August 26, 2024 and sell it today you would earn a total of 1,501 from holding CI Signature Cat or generate 70.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.1% |
| Values | Daily Returns |
Visa Class A vs. CI Signature Cat
Performance |
| Timeline |
| Visa Class A |
| CI Signature Cat |
Visa and CI Signature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CI Signature
The main advantage of trading using opposite Visa and CI Signature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CI Signature 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 Signature will offset losses from the drop in CI Signature's long position.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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