Correlation Between Vistra Energy and FUJIFILM Holdings
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and FUJIFILM Holdings 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 Vistra Energy and FUJIFILM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vistra Energy Corp and FUJIFILM Holdings, you can compare the effects of market volatilities on Vistra Energy and FUJIFILM Holdings 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 Vistra Energy with a short position of FUJIFILM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and FUJIFILM Holdings.
Diversification Opportunities for Vistra Energy and FUJIFILM Holdings
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vistra and FUJIFILM is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and FUJIFILM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIFILM Holdings and Vistra 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 Vistra Energy Corp are associated (or correlated) with FUJIFILM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIFILM Holdings has no effect on the direction of Vistra Energy i.e., Vistra Energy and FUJIFILM Holdings go up and down completely randomly.
Pair Corralation between Vistra Energy and FUJIFILM Holdings
Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 1.48 times more return on investment than FUJIFILM Holdings. However, Vistra Energy is 1.48 times more volatile than FUJIFILM Holdings. It trades about 0.19 of its potential returns per unit of risk. FUJIFILM Holdings is currently generating about -0.05 per unit of risk. If you would invest 7,544 in Vistra Energy Corp on November 2, 2024 and sell it today you would earn a total of 10,086 from holding Vistra Energy Corp or generate 133.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vistra Energy Corp vs. FUJIFILM Holdings
Performance |
| Timeline |
| Vistra Energy Corp |
| FUJIFILM Holdings |
Vistra Energy and FUJIFILM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and FUJIFILM Holdings
The main advantage of trading using opposite Vistra Energy and FUJIFILM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, FUJIFILM Holdings 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 FUJIFILM Holdings will offset losses from the drop in FUJIFILM Holdings' long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| FUJIFILM Holdings vs. Hitachi Ltd ADR | FUJIFILM Holdings vs. Marubeni Corp ADR | FUJIFILM Holdings vs. Compass Diversified Holdings | FUJIFILM Holdings vs. Honeywell International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |