Correlation Between Vistra Energy and Integral

Can any of the company-specific risk be diversified away by investing in both Vistra Energy and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on Vistra Energy and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vistra Energy and Integral.

Diversification Opportunities for Vistra Energy and Integral

-0.01

Correlation Coefficient

Vistra Energy  Integral

Good diversification

The 3 months correlation between Vistra and Integral is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Vistra Energy i.e., Vistra Energy and Integral go up and down completely randomly.

Pair Corralation between Vistra Energy and Integral

Considering the 90-day investment horizon Vistra Energy is expected to generate 1.01 times less return on investment than Integral. In addition to that, Vistra Energy is 1.16 times more volatile than Integral Ad Science. It trades about 0.09 of its total potential returns per unit of risk. Integral Ad Science is currently generating about 0.1 per unit of volatility. If you would invest  1,029  in Integral Ad Science on September 4, 2024 and sell it today you would earn a total of  125.00  from holding Integral Ad Science or generate 12.15% 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.  Integral Ad Science

Vistra Energy Corp

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vistra Energy Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Vistra Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Integral Ad Science

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vistra Energy and Integral

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

The idea behind Vistra Energy Corp and Integral Ad Science 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..