Correlation Between Visa and CITIGROUP
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By analyzing existing cross correlation between Visa Class A and CITIGROUP INC 53, you can compare the effects of market volatilities on Visa and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and CITIGROUP.
Diversification Opportunities for Visa and CITIGROUP
Very good diversification
The 3 months correlation between Visa and CITIGROUP is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and CITIGROUP INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 53 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 53 has no effect on the direction of Visa i.e., Visa and CITIGROUP go up and down completely randomly.
Pair Corralation between Visa and CITIGROUP
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.49 times more return on investment than CITIGROUP. However, Visa Class A is 2.04 times less risky than CITIGROUP. It trades about 0.44 of its potential returns per unit of risk. CITIGROUP INC 53 is currently generating about -0.19 per unit of risk. If you would invest 31,604 in Visa Class A on November 1, 2024 and sell it today you would earn a total of 2,701 from holding Visa Class A or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Visa Class A vs. CITIGROUP INC 53
Performance |
| Timeline |
| Visa Class A |
| CITIGROUP INC 53 |
Visa and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and CITIGROUP
The main advantage of trading using opposite Visa and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| CITIGROUP vs. Integrated Media Technology | CITIGROUP vs. Eltek | CITIGROUP vs. Vishay Precision Group | CITIGROUP vs. BRP 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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