Correlation Between Vistra Energy and Arcelormittal
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Arcelormittal 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 Arcelormittal 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 Arcelormittal, you can compare the effects of market volatilities on Vistra Energy and Arcelormittal 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 Arcelormittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Arcelormittal.
Diversification Opportunities for Vistra Energy and Arcelormittal
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vistra and Arcelormittal is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Arcelormittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelormittal 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 Arcelormittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelormittal has no effect on the direction of Vistra Energy i.e., Vistra Energy and Arcelormittal go up and down completely randomly.
Pair Corralation between Vistra Energy and Arcelormittal
If you would invest 12,666 in Vistra Energy Corp on August 30, 2024 and sell it today you would earn a total of 2,786 from holding Vistra Energy Corp or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Vistra Energy Corp vs. Arcelormittal
Performance |
| Timeline |
| Vistra Energy Corp |
| Arcelormittal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vistra Energy and Arcelormittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and Arcelormittal
The main advantage of trading using opposite Vistra Energy and Arcelormittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Arcelormittal 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 Arcelormittal will offset losses from the drop in Arcelormittal's long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| Arcelormittal vs. Affiliated Managers Group | Arcelormittal vs. Maiden Holdings North | Arcelormittal vs. Credit Enhanced Corts | Arcelormittal vs. Affiliated Managers Group, |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |