Correlation Between Visa and ALLSTATE
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By analyzing existing cross correlation between Visa Class A and ALLSTATE P 535, you can compare the effects of market volatilities on Visa and ALLSTATE 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 ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and ALLSTATE.
Diversification Opportunities for Visa and ALLSTATE
Excellent diversification
The 3 months correlation between Visa and ALLSTATE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and ALLSTATE P 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 535 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 ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 535 has no effect on the direction of Visa i.e., Visa and ALLSTATE go up and down completely randomly.
Pair Corralation between Visa and ALLSTATE
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.49 times more return on investment than ALLSTATE. However, Visa is 1.49 times more volatile than ALLSTATE P 535. It trades about 0.1 of its potential returns per unit of risk. ALLSTATE P 535 is currently generating about 0.03 per unit of risk. If you would invest 27,135 in Visa Class A on September 2, 2024 and sell it today you would earn a total of 4,373 from holding Visa Class A or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.16% |
| Values | Daily Returns |
Visa Class A vs. ALLSTATE P 535
Performance |
| Timeline |
| Visa Class A |
| ALLSTATE P 535 |
Visa and ALLSTATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and ALLSTATE
The main advantage of trading using opposite Visa and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| ALLSTATE vs. Elmos Semiconductor SE | ALLSTATE vs. Radcom | ALLSTATE vs. ON Semiconductor | ALLSTATE vs. Entegris |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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