Correlation Between Visa and CNB Corp
Can any of the company-specific risk be diversified away by investing in both Visa and CNB 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 CNB Corp 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 CNB Corp, you can compare the effects of market volatilities on Visa and CNB 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 CNB Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CNB Corp.
Diversification Opportunities for Visa and CNB Corp
Pay attention - limited upside
The 3 months correlation between Visa and CNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CNB Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNB 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 Class A are associated (or correlated) with CNB Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNB Corp has no effect on the direction of Visa i.e., Visa and CNB Corp go up and down completely randomly.
Pair Corralation between Visa and CNB Corp
If you would invest 29,018 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 2,490 from holding Visa Class A or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. CNB Corp
Performance |
| Timeline |
| Visa Class A |
| CNB Corp |
Visa and CNB Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CNB Corp
The main advantage of trading using opposite Visa and CNB Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CNB 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 CNB Corp will offset losses from the drop in CNB Corp's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CNB Corp vs. Apollo Bancorp | CNB Corp vs. The Farmers Bank | CNB Corp vs. Bank of Utica | CNB Corp vs. Delhi Bank 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 the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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