Correlation Between Gold Fields and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Gold Fields and YPF Sociedad 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 Gold Fields and YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and YPF Sociedad Anonima, you can compare the effects of market volatilities on Gold Fields and YPF Sociedad 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 Gold Fields with a short position of YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and YPF Sociedad.
Diversification Opportunities for Gold Fields and YPF Sociedad
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gold and YPF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and YPF Sociedad Anonima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF Sociedad Anonima and Gold Fields 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 Gold Fields Ltd are associated (or correlated) with YPF Sociedad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF Sociedad Anonima has no effect on the direction of Gold Fields i.e., Gold Fields and YPF Sociedad go up and down completely randomly.
Pair Corralation between Gold Fields and YPF Sociedad
Considering the 90-day investment horizon Gold Fields Ltd is expected to under-perform the YPF Sociedad. In addition to that, Gold Fields is 1.1 times more volatile than YPF Sociedad Anonima. It trades about -0.23 of its total potential returns per unit of risk. YPF Sociedad Anonima is currently generating about 0.85 per unit of volatility. If you would invest 2,430 in YPF Sociedad Anonima on August 24, 2024 and sell it today you would earn a total of 1,573 from holding YPF Sociedad Anonima or generate 64.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Fields Ltd vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Gold Fields |
| YPF Sociedad Anonima |
Gold Fields and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Fields and YPF Sociedad
The main advantage of trading using opposite Gold Fields and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields position performs unexpectedly, YPF Sociedad 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 YPF Sociedad will offset losses from the drop in YPF Sociedad's long position.| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
| YPF Sociedad vs. Eshallgo Class A | YPF Sociedad vs. Amtech Systems | YPF Sociedad vs. Gold Fields Ltd | YPF Sociedad vs. Aegean Airlines SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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