Correlation Between Thrivent High and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and YPF Sociedad Anonima, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and YPF Sociedad.
Diversification Opportunities for Thrivent High and YPF Sociedad
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and YPF is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield 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 Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and YPF Sociedad go up and down completely randomly.
Pair Corralation between Thrivent High and YPF Sociedad
Assuming the 90 days horizon Thrivent High is expected to generate 13.07 times less return on investment than YPF Sociedad. But when comparing it to its historical volatility, Thrivent High Yield is 12.2 times less risky than YPF Sociedad. It trades about 0.14 of its potential returns per unit of risk. YPF Sociedad Anonima is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,732 in YPF Sociedad Anonima on September 14, 2024 and sell it today you would earn a total of 2,691 from holding YPF Sociedad Anonima or generate 155.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Thrivent High Yield vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Thrivent High Yield |
| YPF Sociedad Anonima |
Thrivent High and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and YPF Sociedad
The main advantage of trading using opposite Thrivent High and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Income Fund | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap |
| YPF Sociedad vs. Aquagold International | YPF Sociedad vs. Thrivent High Yield | YPF Sociedad vs. Morningstar Unconstrained Allocation | YPF Sociedad vs. Via Renewables |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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