Correlation Between Visa and JPMORGAN
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By analyzing existing cross correlation between Visa Class A and JPMORGAN CHASE CO, you can compare the effects of market volatilities on Visa and JPMORGAN 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 JPMORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and JPMORGAN.
Diversification Opportunities for Visa and JPMORGAN
Excellent diversification
The 3 months correlation between Visa and JPMORGAN is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and JPMORGAN CHASE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMORGAN CHASE CO 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 JPMORGAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMORGAN CHASE CO has no effect on the direction of Visa i.e., Visa and JPMORGAN go up and down completely randomly.
Pair Corralation between Visa and JPMORGAN
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.04 times more return on investment than JPMORGAN. However, Visa is 1.04 times more volatile than JPMORGAN CHASE CO. It trades about 0.33 of its potential returns per unit of risk. JPMORGAN CHASE CO is currently generating about -0.21 per unit of risk. If you would invest 28,960 in Visa Class A on August 31, 2024 and sell it today you would earn a total of 2,548 from holding Visa Class A or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Visa Class A vs. JPMORGAN CHASE CO
Performance |
| Timeline |
| Visa Class A |
| JPMORGAN CHASE CO |
Visa and JPMORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and JPMORGAN
The main advantage of trading using opposite Visa and JPMORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, JPMORGAN 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 JPMORGAN will offset losses from the drop in JPMORGAN's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| JPMORGAN vs. AEP TEX INC | JPMORGAN vs. US BANK NATIONAL | JPMORGAN vs. American Express | JPMORGAN vs. Chevron Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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