Correlation Between Vistra Energy and Catheter Precision
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Catheter Precision 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 Catheter Precision 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 Catheter Precision, you can compare the effects of market volatilities on Vistra Energy and Catheter Precision 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 Catheter Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Catheter Precision.
Diversification Opportunities for Vistra Energy and Catheter Precision
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vistra and Catheter is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Catheter Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catheter Precision 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 Catheter Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catheter Precision has no effect on the direction of Vistra Energy i.e., Vistra Energy and Catheter Precision go up and down completely randomly.
Pair Corralation between Vistra Energy and Catheter Precision
Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 0.52 times more return on investment than Catheter Precision. However, Vistra Energy Corp is 1.93 times less risky than Catheter Precision. It trades about 0.49 of its potential returns per unit of risk. Catheter Precision is currently generating about 0.02 per unit of risk. If you would invest 14,009 in Vistra Energy Corp on October 29, 2024 and sell it today you would earn a total of 5,102 from holding Vistra Energy Corp or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vistra Energy Corp vs. Catheter Precision
Performance |
| Timeline |
| Vistra Energy Corp |
| Catheter Precision |
Vistra Energy and Catheter Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vistra Energy and Catheter Precision
The main advantage of trading using opposite Vistra Energy and Catheter Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Catheter Precision 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 Catheter Precision will offset losses from the drop in Catheter Precision's long position.| Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
| Catheter Precision vs. Allient | Catheter Precision vs. MYT Netherlands Parent | Catheter Precision vs. Renesas Electronics | Catheter Precision vs. IPG Photonics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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