Correlation Between Vista Energy, and Procter Gamble

Can any of the company-specific risk be diversified away by investing in both Vista Energy, and Procter Gamble 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 Vista Energy, and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vista Energy, SAB and Procter Gamble DRC, you can compare the effects of market volatilities on Vista Energy, and Procter Gamble 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 Vista Energy, with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vista Energy, and Procter Gamble.

Diversification Opportunities for Vista Energy, and Procter Gamble

-0.9

Correlation Coefficient

Vista Energy,  Procter Gamble

Pay attention - limited upside

The 3 months correlation between Vista and Procter is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vista Energy, SAB and Procter Gamble DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble DRC and Vista 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 Vista Energy, SAB are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble DRC has no effect on the direction of Vista Energy, i.e., Vista Energy, and Procter Gamble go up and down completely randomly.

Pair Corralation between Vista Energy, and Procter Gamble

Assuming the 90 days trading horizon Vista Energy, SAB is expected to under-perform the Procter Gamble. In addition to that, Vista Energy, is 2.21 times more volatile than Procter Gamble DRC. It trades about -0.06 of its total potential returns per unit of risk. Procter Gamble DRC is currently generating about 0.12 per unit of volatility. If you would invest  1,327,493  in Procter Gamble DRC on December 30, 2024 and sell it today you would earn a total of  135,007  from holding Procter Gamble DRC or generate 10.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Vista Energy, SAB  vs.  Procter Gamble DRC

Vista Energy, SAB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vista Energy, SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Procter Gamble DRC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Procter Gamble DRC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Procter Gamble may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vista Energy, and Procter Gamble

The main advantage of trading using opposite Vista Energy, and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vista Energy, position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.

The idea behind Vista Energy, SAB and Procter Gamble DRC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..