Correlation Between Vista Energy, and Cablevision Holding
Can any of the company-specific risk be diversified away by investing in both Vista Energy, and Cablevision Holding 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 Vista Energy, and Cablevision Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vista Energy, SAB and Cablevision Holding SA, you can compare the effects of market volatilities on Vista Energy, and Cablevision Holding 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 Energy, with a short position of Cablevision Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Energy, and Cablevision Holding.
Diversification Opportunities for Vista Energy, and Cablevision Holding
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vista and Cablevision is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Vista Energy, SAB and Cablevision Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cablevision Holding and Vista Energy, 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 Energy, SAB are associated (or correlated) with Cablevision Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cablevision Holding has no effect on the direction of Vista Energy, i.e., Vista Energy, and Cablevision Holding go up and down completely randomly.
Pair Corralation between Vista Energy, and Cablevision Holding
Assuming the 90 days trading horizon Vista Energy, is expected to generate 1.11 times less return on investment than Cablevision Holding. But when comparing it to its historical volatility, Vista Energy, SAB is 1.01 times less risky than Cablevision Holding. It trades about 0.12 of its potential returns per unit of risk. Cablevision Holding SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 335,500 in Cablevision Holding SA on September 12, 2024 and sell it today you would earn a total of 371,500 from holding Cablevision Holding SA or generate 110.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Energy, SAB vs. Cablevision Holding SA
Performance |
| Timeline |
| Vista Energy, SAB |
| Cablevision Holding |
Vista Energy, and Cablevision Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Energy, and Cablevision Holding
The main advantage of trading using opposite Vista Energy, and Cablevision Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Energy, position performs unexpectedly, Cablevision Holding 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 Cablevision Holding will offset losses from the drop in Cablevision Holding's long position.| Vista Energy, vs. Alibaba Group Holding | Vista Energy, vs. Apple Inc DRC | Vista Energy, vs. Alphabet Inc Class A CEDEAR | Vista Energy, vs. Amazon Inc |
| Cablevision Holding vs. Grupo Televisa SAB | Cablevision Holding vs. Telecom Argentina | Cablevision Holding vs. Edesa Holding SA | Cablevision Holding vs. Vista Energy, SAB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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