Correlation Between Vistra Energy and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Schweiter Technologies 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 Schweiter Technologies 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 Schweiter Technologies AG, you can compare the effects of market volatilities on Vistra Energy and Schweiter Technologies 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 Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Schweiter Technologies.
Diversification Opportunities for Vistra Energy and Schweiter Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vistra and Schweiter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies 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 Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Vistra Energy i.e., Vistra Energy and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Vistra Energy and Schweiter Technologies
If you would invest 15,391 in Vistra Energy Corp on November 3, 2024 and sell it today you would earn a total of 1,412 from holding Vistra Energy Corp or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Vistra Energy Corp vs. Schweiter Technologies AG
Performance |
| Timeline |
| Vistra Energy Corp |
| Schweiter Technologies |
Vistra Energy and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and Schweiter Technologies
The main advantage of trading using opposite Vistra Energy and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| Schweiter Technologies vs. Trane Technologies plc | Schweiter Technologies vs. Masco | Schweiter Technologies vs. Quanex Building Products | Schweiter Technologies vs. Jeld Wen Holding |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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