Correlation Between YPF Sociedad and Calfrac Well
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Calfrac Well 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 Calfrac Well 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 Calfrac Well Services, you can compare the effects of market volatilities on YPF Sociedad and Calfrac Well 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 Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Calfrac Well.
Diversification Opportunities for YPF Sociedad and Calfrac Well
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YPF and Calfrac is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services 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 Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Calfrac Well go up and down completely randomly.
Pair Corralation between YPF Sociedad and Calfrac Well
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 1.37 times more return on investment than Calfrac Well. However, YPF Sociedad is 1.37 times more volatile than Calfrac Well Services. It trades about 0.11 of its potential returns per unit of risk. Calfrac Well Services is currently generating about -0.03 per unit of risk. If you would invest 749.00 in YPF Sociedad Anonima on September 2, 2024 and sell it today you would earn a total of 3,281 from holding YPF Sociedad Anonima or generate 438.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. Calfrac Well Services
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Calfrac Well Services |
YPF Sociedad and Calfrac Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Calfrac Well
The main advantage of trading using opposite YPF Sociedad and Calfrac Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Calfrac Well 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 Calfrac Well will offset losses from the drop in Calfrac Well's long position.| YPF Sociedad vs. Shell PLC ADR | YPF Sociedad vs. Equinor ASA ADR | YPF Sociedad vs. Petrleo Brasileiro SA |
| Calfrac Well vs. Petroleo Brasileiro Petrobras | Calfrac Well vs. Equinor ASA ADR | Calfrac Well vs. Eni SpA ADR | Calfrac Well vs. YPF Sociedad Anonima |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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