Correlation Between Vista Oil and Farmacias Benavides
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By analyzing existing cross correlation between Vista Oil Gas and Farmacias Benavides SAB, you can compare the effects of market volatilities on Vista Oil and Farmacias Benavides 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 Vista Oil with a short position of Farmacias Benavides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Oil and Farmacias Benavides.
Diversification Opportunities for Vista Oil and Farmacias Benavides
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vista and Farmacias is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vista Oil Gas and Farmacias Benavides SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmacias Benavides SAB and Vista Oil 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 Vista Oil Gas are associated (or correlated) with Farmacias Benavides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmacias Benavides SAB has no effect on the direction of Vista Oil i.e., Vista Oil and Farmacias Benavides go up and down completely randomly.
Pair Corralation between Vista Oil and Farmacias Benavides
Assuming the 90 days trading horizon Vista Oil Gas is expected to generate 2.1 times more return on investment than Farmacias Benavides. However, Vista Oil is 2.1 times more volatile than Farmacias Benavides SAB. It trades about 0.19 of its potential returns per unit of risk. Farmacias Benavides SAB is currently generating about 0.22 per unit of risk. If you would invest 109,241 in Vista Oil Gas on October 20, 2024 and sell it today you would earn a total of 8,737 from holding Vista Oil Gas or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Oil Gas vs. Farmacias Benavides SAB
Performance |
| Timeline |
| Vista Oil Gas |
| Farmacias Benavides SAB |
Vista Oil and Farmacias Benavides Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Oil and Farmacias Benavides
The main advantage of trading using opposite Vista Oil and Farmacias Benavides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Oil position performs unexpectedly, Farmacias Benavides 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 Farmacias Benavides will offset losses from the drop in Farmacias Benavides' long position.| Vista Oil vs. Genworth Financial | Vista Oil vs. Monster Beverage Corp | Vista Oil vs. Grupo Sports World | Vista Oil vs. Samsung Electronics Co |
| Farmacias Benavides vs. The Home Depot | Farmacias Benavides vs. New Oriental Education | Farmacias Benavides vs. GMxico Transportes SAB | Farmacias Benavides vs. KB Home |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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