Correlation Between FIBRA Storage and Vista Oil
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By analyzing existing cross correlation between FIBRA Storage and Vista Oil Gas, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of Vista Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Vista Oil.
Diversification Opportunities for FIBRA Storage and Vista Oil
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIBRA and Vista is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage 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 FIBRA Storage 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 FIBRA Storage 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 FIBRA Storage i.e., FIBRA Storage and Vista Oil go up and down completely randomly.
Pair Corralation between FIBRA Storage and Vista Oil
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 14.16 times less return on investment than Vista Oil. But when comparing it to its historical volatility, FIBRA Storage is 3.16 times less risky than Vista Oil. It trades about 0.02 of its potential returns per unit of risk. Vista Oil Gas is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 30,900 in Vista Oil Gas on September 21, 2024 and sell it today you would earn a total of 78,341 from holding Vista Oil Gas or generate 253.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FIBRA Storage vs. Vista Oil Gas
Performance |
| Timeline |
| FIBRA Storage |
| Vista Oil Gas |
FIBRA Storage and Vista Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Vista Oil
The main advantage of trading using opposite FIBRA Storage and Vista Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. Apple Inc | FIBRA Storage vs. Microsoft | FIBRA Storage vs. Alphabet Inc Class A | FIBRA Storage vs. Alphabet Inc |
| Vista Oil vs. McEwen Mining | Vista Oil vs. First Majestic Silver | Vista Oil vs. CVS Health | Vista Oil vs. FIBRA Storage |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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