Correlation Between Becle SAB and Vista Oil
Can any of the company-specific risk be diversified away by investing in both Becle SAB and Vista Oil at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Becle SAB and Vista Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Becle SAB de and Vista Oil Gas, you can compare the effects of market volatilities on Becle SAB and Vista Oil 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 Becle SAB with a short position of Vista Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becle SAB and Vista Oil.
Diversification Opportunities for Becle SAB and Vista Oil
Very good diversification
The 3 months correlation between Becle and Vista is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Becle SAB de and Vista Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Oil Gas and Becle SAB 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 Becle SAB de are associated (or correlated) with Vista Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Oil Gas has no effect on the direction of Becle SAB i.e., Becle SAB and Vista Oil go up and down completely randomly.
Pair Corralation between Becle SAB and Vista Oil
Assuming the 90 days trading horizon Becle SAB de is expected to under-perform the Vista Oil. In addition to that, Becle SAB is 1.02 times more volatile than Vista Oil Gas. It trades about -0.43 of its total potential returns per unit of risk. Vista Oil Gas is currently generating about 0.1 per unit of volatility. If you would invest 112,500 in Vista Oil Gas on October 29, 2024 and sell it today you would earn a total of 4,388 from holding Vista Oil Gas or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Becle SAB de vs. Vista Oil Gas
Performance |
| Timeline |
| Becle SAB de |
| Vista Oil Gas |
Becle SAB and Vista Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becle SAB and Vista Oil
The main advantage of trading using opposite Becle SAB and Vista Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becle SAB position performs unexpectedly, Vista Oil 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 Vista Oil will offset losses from the drop in Vista Oil's long position.| Becle SAB vs. Wal Mart de Mxico | Becle SAB vs. Banco del Bajo | Becle SAB vs. El Puerto de | Becle SAB vs. Gruma SAB de |
| Vista Oil vs. Banco del Bajo | Vista Oil vs. Gentera SAB de | Vista Oil vs. Megacable Holdings S | Vista Oil vs. Becle SAB de |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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