Correlation Between Visa and LOEWS
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By analyzing existing cross correlation between Visa Class A and LOEWS P 4125, you can compare the effects of market volatilities on Visa and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and LOEWS.
Diversification Opportunities for Visa and LOEWS
Good diversification
The 3 months correlation between Visa and LOEWS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and LOEWS P 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 4125 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 4125 has no effect on the direction of Visa i.e., Visa and LOEWS go up and down completely randomly.
Pair Corralation between Visa and LOEWS
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.65 times more return on investment than LOEWS. However, Visa Class A is 1.54 times less risky than LOEWS. It trades about 0.32 of its potential returns per unit of risk. LOEWS P 4125 is currently generating about -0.07 per unit of risk. If you would invest 33,398 in Visa Class A on November 28, 2024 and sell it today you would earn a total of 1,811 from holding Visa Class A or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Visa Class A vs. LOEWS P 4125
Performance |
| Timeline |
| Visa Class A |
| LOEWS P 4125 |
Visa and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and LOEWS
The main advantage of trading using opposite Visa and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| LOEWS vs. Catalyst Pharmaceuticals | LOEWS vs. Belden Inc | LOEWS vs. Molecular Partners AG | LOEWS vs. Alto Neuroscience, |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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