Correlation Between Vista Energy, and San Miguel
Can any of the company-specific risk be diversified away by investing in both Vista Energy, and San Miguel 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 San Miguel 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 San Miguel AG, you can compare the effects of market volatilities on Vista Energy, and San Miguel 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 San Miguel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Energy, and San Miguel.
Diversification Opportunities for Vista Energy, and San Miguel
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vista and San is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Vista Energy, SAB and San Miguel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Miguel AG 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 San Miguel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Miguel AG has no effect on the direction of Vista Energy, i.e., Vista Energy, and San Miguel go up and down completely randomly.
Pair Corralation between Vista Energy, and San Miguel
Assuming the 90 days trading horizon Vista Energy, is expected to generate 12.08 times less return on investment than San Miguel. But when comparing it to its historical volatility, Vista Energy, SAB is 19.85 times less risky than San Miguel. It trades about 0.11 of its potential returns per unit of risk. San Miguel AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11,750 in San Miguel AG on September 12, 2024 and sell it today you would earn a total of 128,750 from holding San Miguel AG or generate 1095.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Vista Energy, SAB vs. San Miguel AG
Performance |
| Timeline |
| Vista Energy, SAB |
| San Miguel AG |
Vista Energy, and San Miguel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vista Energy, and San Miguel
The main advantage of trading using opposite Vista Energy, and San Miguel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Energy, position performs unexpectedly, San Miguel 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 San Miguel will offset losses from the drop in San Miguel'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 |
| San Miguel vs. Molinos Agro SA | San Miguel vs. Ledesma SAAI | San Miguel vs. Edesa Holding SA | San Miguel 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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