Correlation Between Vistra Energy and Getty Copper
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Getty Copper 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 Getty Copper 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 Getty Copper, you can compare the effects of market volatilities on Vistra Energy and Getty Copper 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 Getty Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Getty Copper.
Diversification Opportunities for Vistra Energy and Getty Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vistra and Getty is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Vistra Energy i.e., Vistra Energy and Getty Copper go up and down completely randomly.
Pair Corralation between Vistra Energy and Getty Copper
Considering the 90-day investment horizon Vistra Energy is expected to generate 3.58 times less return on investment than Getty Copper. But when comparing it to its historical volatility, Vistra Energy Corp is 3.41 times less risky than Getty Copper. It trades about 0.12 of its potential returns per unit of risk. Getty Copper is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.11 in Getty Copper on August 30, 2024 and sell it today you would earn a total of 3.77 from holding Getty Copper or generate 339.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vistra Energy Corp vs. Getty Copper
Performance |
| Timeline |
| Vistra Energy Corp |
| Getty Copper |
Vistra Energy and Getty Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and Getty Copper
The main advantage of trading using opposite Vistra Energy and Getty Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Getty Copper 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 Getty Copper will offset losses from the drop in Getty Copper's long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| Getty Copper vs. Ameriwest Lithium | Getty Copper vs. Osisko Metals Incorporated | Getty Copper vs. Volt Lithium Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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