Correlation Between Visa and CARRIER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Visa Class A and CARRIER GLOBAL P, you can compare the effects of market volatilities on Visa and CARRIER 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 CARRIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CARRIER.
Diversification Opportunities for Visa and CARRIER
Excellent diversification
The 3 months correlation between Visa and CARRIER is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CARRIER GLOBAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARRIER GLOBAL P 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 CARRIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARRIER GLOBAL P has no effect on the direction of Visa i.e., Visa and CARRIER go up and down completely randomly.
Pair Corralation between Visa and CARRIER
Taking into account the 90-day investment horizon Visa is expected to generate 44.05 times less return on investment than CARRIER. But when comparing it to its historical volatility, Visa Class A is 63.97 times less risky than CARRIER. It trades about 0.08 of its potential returns per unit of risk. CARRIER GLOBAL P is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,958 in CARRIER GLOBAL P on September 2, 2024 and sell it today you would lose (1,020) from holding CARRIER GLOBAL P or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.36% |
| Values | Daily Returns |
Visa Class A vs. CARRIER GLOBAL P
Performance |
| Timeline |
| Visa Class A |
| CARRIER GLOBAL P |
Visa and CARRIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CARRIER
The main advantage of trading using opposite Visa and CARRIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CARRIER 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 CARRIER will offset losses from the drop in CARRIER's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CARRIER vs. Playtika Holding Corp | CARRIER vs. Mind Technology | CARRIER vs. Playa Hotels Resorts | CARRIER vs. JD Sports Fashion |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |