Correlation Between Visa and CHUBB
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By analyzing existing cross correlation between Visa Class A and CHUBB P 6, you can compare the effects of market volatilities on Visa and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CHUBB.
Diversification Opportunities for Visa and CHUBB
Excellent diversification
The 3 months correlation between Visa and CHUBB is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of Visa i.e., Visa and CHUBB go up and down completely randomly.
Pair Corralation between Visa and CHUBB
Taking into account the 90-day investment horizon Visa is expected to generate 113.1 times less return on investment than CHUBB. But when comparing it to its historical volatility, Visa Class A is 101.91 times less risky than CHUBB. It trades about 0.08 of its potential returns per unit of risk. CHUBB P 6 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,957 in CHUBB P 6 on September 2, 2024 and sell it today you would earn a total of 331.00 from holding CHUBB P 6 or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.8% |
| Values | Daily Returns |
Visa Class A vs. CHUBB P 6
Performance |
| Timeline |
| Visa Class A |
| CHUBB P 6 |
Visa and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CHUBB
The main advantage of trading using opposite Visa and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CHUBB vs. Perseus Mining Limited | CHUBB vs. Definitive Healthcare Corp | CHUBB vs. Mangazeya Mining | CHUBB vs. Zijin Mining Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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