Correlation Between Vista Energy, and Pampa Energia
Can any of the company-specific risk be diversified away by investing in both Vista Energy, and Pampa Energia 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 Pampa Energia 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 Pampa Energia SA, you can compare the effects of market volatilities on Vista Energy, and Pampa Energia 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 Pampa Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Energy, and Pampa Energia.
Diversification Opportunities for Vista Energy, and Pampa Energia
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vista and Pampa is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vista Energy, SAB and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA 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 Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of Vista Energy, i.e., Vista Energy, and Pampa Energia go up and down completely randomly.
Pair Corralation between Vista Energy, and Pampa Energia
Assuming the 90 days trading horizon Vista Energy, SAB is expected to generate 1.61 times more return on investment than Pampa Energia. However, Vista Energy, is 1.61 times more volatile than Pampa Energia SA. It trades about 0.29 of its potential returns per unit of risk. Pampa Energia SA is currently generating about 0.39 per unit of risk. If you would invest 1,655 in Vista Energy, SAB on September 13, 2024 and sell it today you would earn a total of 295.00 from holding Vista Energy, SAB or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vista Energy, SAB vs. Pampa Energia SA
Performance |
| Timeline |
| Vista Energy, SAB |
| Pampa Energia SA |
Vista Energy, and Pampa Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Energy, and Pampa Energia
The main advantage of trading using opposite Vista Energy, and Pampa Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Energy, position performs unexpectedly, Pampa Energia 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 Pampa Energia will offset losses from the drop in Pampa Energia'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 |
| Pampa Energia vs. Compania de Transporte | Pampa Energia vs. Edesa Holding SA | Pampa Energia vs. Vista Energy, SAB | Pampa Energia vs. United States Steel |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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