Correlation Between Vistra Energy and Alta Global
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Alta Global 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 Alta Global 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 Alta Global Group, you can compare the effects of market volatilities on Vistra Energy and Alta Global 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 Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Alta Global.
Diversification Opportunities for Vistra Energy and Alta Global
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vistra and Alta is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global Group 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 Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of Vistra Energy i.e., Vistra Energy and Alta Global go up and down completely randomly.
Pair Corralation between Vistra Energy and Alta Global
Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 0.78 times more return on investment than Alta Global. However, Vistra Energy Corp is 1.28 times less risky than Alta Global. It trades about -0.02 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.23 per unit of risk. If you would invest 14,580 in Vistra Energy Corp on September 12, 2024 and sell it today you would lose (428.00) from holding Vistra Energy Corp or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vistra Energy Corp vs. Alta Global Group
Performance |
| Timeline |
| Vistra Energy Corp |
| Alta Global Group |
Vistra Energy and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and Alta Global
The main advantage of trading using opposite Vistra Energy and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global's long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| Alta Global vs. NiSource | Alta Global vs. Vistra Energy Corp | Alta Global vs. Black Hills | Alta Global vs. Sellas Life Sciences |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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