Correlation Between Vistra Energy and Veea

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

Diversification Opportunities for Vistra Energy and Veea

0.53

Correlation Coefficient

Vistra Energy  Veea

Very weak diversification

The 3 months correlation between Vistra and Veea is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Vistra Energy Corp and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Vistra Energy i.e., Vistra Energy and Veea go up and down completely randomly.

Pair Corralation between Vistra Energy and Veea

Considering the 90-day investment horizon Vistra Energy Corp is expected to generate 1.25 times more return on investment than Veea. However, Vistra Energy is 1.25 times more volatile than Veea Inc. It trades about 0.02 of its potential returns per unit of risk. Veea Inc is currently generating about -0.27 per unit of risk. If you would invest  13,268  in Vistra Energy Corp on December 18, 2024 and sell it today you would lose (639.00) from holding Vistra Energy Corp or give up 4.82% of portfolio value over 90 days.

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

Vistra Energy Corp  vs.  Veea Inc

Vistra Energy Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vistra Energy Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Vistra Energy may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Veea Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Veea Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Vistra Energy and Veea

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

The idea behind Vistra Energy Corp and Veea Inc 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.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.