Correlation Between YPF Sociedad and Aegon Funding
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Aegon Funding 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 YPF Sociedad and Aegon Funding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YPF Sociedad Anonima and Aegon Funding, you can compare the effects of market volatilities on YPF Sociedad and Aegon Funding 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 YPF Sociedad with a short position of Aegon Funding. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Aegon Funding.
Diversification Opportunities for YPF Sociedad and Aegon Funding
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YPF and Aegon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Aegon Funding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon Funding and YPF Sociedad 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 YPF Sociedad Anonima are associated (or correlated) with Aegon Funding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon Funding has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Aegon Funding go up and down completely randomly.
Pair Corralation between YPF Sociedad and Aegon Funding
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 2.19 times more return on investment than Aegon Funding. However, YPF Sociedad is 2.19 times more volatile than Aegon Funding. It trades about 0.88 of its potential returns per unit of risk. Aegon Funding is currently generating about 0.1 per unit of risk. If you would invest 2,537 in YPF Sociedad Anonima on September 2, 2024 and sell it today you would earn a total of 1,493 from holding YPF Sociedad Anonima or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. Aegon Funding
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Aegon Funding |
YPF Sociedad and Aegon Funding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Aegon Funding
The main advantage of trading using opposite YPF Sociedad and Aegon Funding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Aegon Funding 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 Aegon Funding will offset losses from the drop in Aegon Funding's long position.| YPF Sociedad vs. Shell PLC ADR | YPF Sociedad vs. Equinor ASA ADR | YPF Sociedad vs. Petrleo Brasileiro SA |
| Aegon Funding vs. Stepan Company | Aegon Funding vs. Nomura Holdings ADR | Aegon Funding vs. Luxfer Holdings PLC | Aegon Funding vs. Alvarium Tiedemann Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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