Correlation Between Schweiter Technologies and Vistra Energy
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies and Vistra Energy 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 Schweiter Technologies and Vistra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and Vistra Energy Corp, you can compare the effects of market volatilities on Schweiter Technologies and Vistra Energy 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 Schweiter Technologies with a short position of Vistra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Vistra Energy.
Diversification Opportunities for Schweiter Technologies and Vistra Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schweiter and Vistra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and Vistra Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vistra Energy Corp and Schweiter Technologies 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 Schweiter Technologies AG are associated (or correlated) with Vistra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vistra Energy Corp has no effect on the direction of Schweiter Technologies i.e., Schweiter Technologies and Vistra Energy go up and down completely randomly.
Pair Corralation between Schweiter Technologies and Vistra Energy
Assuming the 90 days horizon Schweiter Technologies AG is expected to under-perform the Vistra Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Schweiter Technologies AG is 3.86 times less risky than Vistra Energy. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Vistra Energy Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,234 in Vistra Energy Corp on October 23, 2024 and sell it today you would earn a total of 16,321 from holding Vistra Energy Corp or generate 730.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.58% |
| Values | Daily Returns |
Schweiter Technologies AG vs. Vistra Energy Corp
Performance |
| Timeline |
| Schweiter Technologies |
| Vistra Energy Corp |
Schweiter Technologies and Vistra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and Vistra Energy
The main advantage of trading using opposite Schweiter Technologies and Vistra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies position performs unexpectedly, Vistra Energy 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 Vistra Energy will offset losses from the drop in Vistra Energy's long position.| Schweiter Technologies vs. Trane Technologies plc | Schweiter Technologies vs. Masco | Schweiter Technologies vs. Quanex Building Products | Schweiter Technologies vs. Jeld Wen Holding |
| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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