Correlation Between Visa and FEDEX
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By analyzing existing cross correlation between Visa Class A and FEDEX P 44, you can compare the effects of market volatilities on Visa and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and FEDEX.
Diversification Opportunities for Visa and FEDEX
Very good diversification
The 3 months correlation between Visa and FEDEX is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of Visa i.e., Visa and FEDEX go up and down completely randomly.
Pair Corralation between Visa and FEDEX
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.24 times more return on investment than FEDEX. However, Visa Class A is 4.2 times less risky than FEDEX. It trades about 0.29 of its potential returns per unit of risk. FEDEX P 44 is currently generating about -0.01 per unit of risk. If you would invest 27,442 in Visa Class A on August 30, 2024 and sell it today you would earn a total of 4,028 from holding Visa Class A or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Visa Class A vs. FEDEX P 44
Performance |
| Timeline |
| Visa Class A |
| FEDEX P 44 |
Visa and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and FEDEX
The main advantage of trading using opposite Visa and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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