Correlation Between Vistra Energy and Optimi Health
Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Optimi Health 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 Optimi Health 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 Optimi Health Corp, you can compare the effects of market volatilities on Vistra Energy and Optimi Health 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 Optimi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Optimi Health.
Diversification Opportunities for Vistra Energy and Optimi Health
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vistra and Optimi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Optimi Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimi Health Corp 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 Optimi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimi Health Corp has no effect on the direction of Vistra Energy i.e., Vistra Energy and Optimi Health go up and down completely randomly.
Pair Corralation between Vistra Energy and Optimi Health
Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 0.55 times more return on investment than Optimi Health. However, Vistra Energy Corp is 1.82 times less risky than Optimi Health. It trades about 0.2 of its potential returns per unit of risk. Optimi Health Corp is currently generating about -0.02 per unit of risk. If you would invest 9,093 in Vistra Energy Corp on September 17, 2024 and sell it today you would earn a total of 5,577 from holding Vistra Energy Corp or generate 61.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Vistra Energy Corp vs. Optimi Health Corp
Performance |
Timeline |
Vistra Energy Corp |
Optimi Health Corp |
Vistra Energy and Optimi Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vistra Energy and Optimi Health
The main advantage of trading using opposite Vistra Energy and Optimi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vistra Energy position performs unexpectedly, Optimi Health 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 Optimi Health will offset losses from the drop in Optimi Health's long position.Vistra Energy vs. Pampa Energia SA | Vistra Energy vs. TransAlta Corp | Vistra Energy vs. Kenon Holdings | Vistra Energy vs. NRG Energy |
Optimi Health vs. Cybin Inc | Optimi Health vs. TAAT Global Alternatives | Optimi Health vs. Spey Resources Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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