Correlation Between Vistra Energy and PT Kalbe
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and PT Kalbe 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 PT Kalbe 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 PT Kalbe Farma, you can compare the effects of market volatilities on Vistra Energy and PT Kalbe 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 PT Kalbe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and PT Kalbe.
Diversification Opportunities for Vistra Energy and PT Kalbe
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vistra and PTKFF is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and PT Kalbe Farma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kalbe Farma 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 PT Kalbe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kalbe Farma has no effect on the direction of Vistra Energy i.e., Vistra Energy and PT Kalbe go up and down completely randomly.
Pair Corralation between Vistra Energy and PT Kalbe
Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 1.29 times more return on investment than PT Kalbe. However, Vistra Energy is 1.29 times more volatile than PT Kalbe Farma. It trades about 0.44 of its potential returns per unit of risk. PT Kalbe Farma is currently generating about -0.22 per unit of risk. If you would invest 11,574 in Vistra Energy Corp on September 3, 2024 and sell it today you would earn a total of 4,410 from holding Vistra Energy Corp or generate 38.1% 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. PT Kalbe Farma
Performance |
| Timeline |
| Vistra Energy Corp |
| PT Kalbe Farma |
Vistra Energy and PT Kalbe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and PT Kalbe
The main advantage of trading using opposite Vistra Energy and PT Kalbe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, PT Kalbe 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 PT Kalbe will offset losses from the drop in PT Kalbe's long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| PT Kalbe vs. Amgen Inc | PT Kalbe vs. Bristol Myers Squibb | PT Kalbe vs. Roche Holding AG | PT Kalbe vs. Novartis AG |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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