Correlation Between Visa and MCKESSON
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By analyzing existing cross correlation between Visa Class A and MCKESSON P NEW, you can compare the effects of market volatilities on Visa and MCKESSON 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 MCKESSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and MCKESSON.
Diversification Opportunities for Visa and MCKESSON
Excellent diversification
The 3 months correlation between Visa and MCKESSON is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and MCKESSON P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCKESSON P NEW 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 MCKESSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCKESSON P NEW has no effect on the direction of Visa i.e., Visa and MCKESSON go up and down completely randomly.
Pair Corralation between Visa and MCKESSON
Taking into account the 90-day investment horizon Visa Class A is expected to generate 5.34 times more return on investment than MCKESSON. However, Visa is 5.34 times more volatile than MCKESSON P NEW. It trades about 0.22 of its potential returns per unit of risk. MCKESSON P NEW is currently generating about -0.2 per unit of risk. If you would invest 27,226 in Visa Class A on September 24, 2024 and sell it today you would earn a total of 4,495 from holding Visa Class A or generate 16.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 87.69% |
Values | Daily Returns |
Visa Class A vs. MCKESSON P NEW
Performance |
Timeline |
Visa Class A |
MCKESSON P NEW |
Visa and MCKESSON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Visa and MCKESSON
The main advantage of trading using opposite Visa and MCKESSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, MCKESSON 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 MCKESSON will offset losses from the drop in MCKESSON's long position.Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
MCKESSON vs. Westinghouse Air Brake | MCKESSON vs. Porvair plc | MCKESSON vs. AerSale Corp | MCKESSON vs. Deluxe |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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