Correlation Between Visa and COMERICA
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By analyzing existing cross correlation between Visa Class A and COMERICA INC 4, you can compare the effects of market volatilities on Visa and COMERICA 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 COMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and COMERICA.
Diversification Opportunities for Visa and COMERICA
Excellent diversification
The 3 months correlation between Visa and COMERICA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and COMERICA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMERICA INC 4 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 COMERICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMERICA INC 4 has no effect on the direction of Visa i.e., Visa and COMERICA go up and down completely randomly.
Pair Corralation between Visa and COMERICA
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.97 times more return on investment than COMERICA. However, Visa Class A is 1.03 times less risky than COMERICA. It trades about 0.09 of its potential returns per unit of risk. COMERICA INC 4 is currently generating about 0.01 per unit of risk. If you would invest 20,548 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 10,922 from holding Visa Class A or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
Visa Class A vs. COMERICA INC 4
Performance |
| Timeline |
| Visa Class A |
| COMERICA INC 4 |
Visa and COMERICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and COMERICA
The main advantage of trading using opposite Visa and COMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, COMERICA 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 COMERICA will offset losses from the drop in COMERICA's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| COMERICA vs. Lindblad Expeditions Holdings | COMERICA vs. Videolocity International | COMERICA vs. Mills Music Trust | COMERICA vs. Warner Music 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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