Correlation Between Transportadora and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Transportadora 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 Transportadora and YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and YPF Sociedad Anonima, you can compare the effects of market volatilities on Transportadora 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 Transportadora with a short position of YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and YPF Sociedad.
Diversification Opportunities for Transportadora and YPF Sociedad
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Transportadora and YPF is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas 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 Transportadora 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 Transportadora de Gas 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 Transportadora i.e., Transportadora and YPF Sociedad go up and down completely randomly.
Pair Corralation between Transportadora and YPF Sociedad
Considering the 90-day investment horizon Transportadora de Gas is expected to generate 1.52 times more return on investment than YPF Sociedad. However, Transportadora is 1.52 times more volatile than YPF Sociedad Anonima. It trades about -0.15 of its potential returns per unit of risk. YPF Sociedad Anonima is currently generating about -0.24 per unit of risk. If you would invest 3,240 in Transportadora de Gas on November 2, 2024 and sell it today you would lose (305.00) from holding Transportadora de Gas or give up 9.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Transportadora de Gas |
| YPF Sociedad Anonima |
Transportadora and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and YPF Sociedad
The main advantage of trading using opposite Transportadora and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora 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.| Transportadora vs. Petroleo Brasileiro Petrobras | Transportadora vs. Ecopetrol SA ADR | Transportadora vs. Petrleo Brasileiro SA | Transportadora vs. Equinor ASA ADR |
| YPF Sociedad vs. National Fuel Gas | YPF Sociedad vs. Eni SpA ADR | YPF Sociedad vs. Ecopetrol SA ADR | YPF Sociedad vs. TotalEnergies SE ADR |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |