Correlation Between Visa and CARLISLE
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By analyzing existing cross correlation between Visa Class A and CARLISLE INC 375, you can compare the effects of market volatilities on Visa and CARLISLE 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 CARLISLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CARLISLE.
Diversification Opportunities for Visa and CARLISLE
Pay attention - limited upside
The 3 months correlation between Visa and CARLISLE is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CARLISLE INC 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARLISLE INC 375 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 CARLISLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARLISLE INC 375 has no effect on the direction of Visa i.e., Visa and CARLISLE go up and down completely randomly.
Pair Corralation between Visa and CARLISLE
Taking into account the 90-day investment horizon Visa Class A is expected to generate 2.68 times more return on investment than CARLISLE. However, Visa is 2.68 times more volatile than CARLISLE INC 375. It trades about 0.09 of its potential returns per unit of risk. CARLISLE INC 375 is currently generating about 0.04 per unit of risk. If you would invest 25,380 in Visa Class A on September 3, 2024 and sell it today you would earn a total of 6,285 from holding Visa Class A or generate 24.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.71% |
| Values | Daily Returns |
Visa Class A vs. CARLISLE INC 375
Performance |
| Timeline |
| Visa Class A |
| CARLISLE INC 375 |
Visa and CARLISLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CARLISLE
The main advantage of trading using opposite Visa and CARLISLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CARLISLE 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 CARLISLE will offset losses from the drop in CARLISLE's long position.| Visa vs. American Express | Visa vs. Capital One Financial | Visa vs. Upstart Holdings | Visa vs. Ally Financial |
| CARLISLE vs. The Travelers Companies | CARLISLE vs. GE Aerospace | CARLISLE vs. Walmart | CARLISLE vs. Pfizer Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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