Correlation Between YPF Sociedad and CanAlaska Uranium
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and CanAlaska Uranium 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 CanAlaska Uranium 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 CanAlaska Uranium, you can compare the effects of market volatilities on YPF Sociedad and CanAlaska Uranium 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 CanAlaska Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and CanAlaska Uranium.
Diversification Opportunities for YPF Sociedad and CanAlaska Uranium
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YPF and CanAlaska is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium 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 CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and CanAlaska Uranium go up and down completely randomly.
Pair Corralation between YPF Sociedad and CanAlaska Uranium
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 0.62 times more return on investment than CanAlaska Uranium. However, YPF Sociedad Anonima is 1.6 times less risky than CanAlaska Uranium. It trades about 0.13 of its potential returns per unit of risk. CanAlaska Uranium is currently generating about 0.05 per unit of risk. If you would invest 1,212 in YPF Sociedad Anonima on August 25, 2024 and sell it today you would earn a total of 2,791 from holding YPF Sociedad Anonima or generate 230.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. CanAlaska Uranium
Performance |
| Timeline |
| YPF Sociedad Anonima |
| CanAlaska Uranium |
YPF Sociedad and CanAlaska Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and CanAlaska Uranium
The main advantage of trading using opposite YPF Sociedad and CanAlaska Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, CanAlaska Uranium 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 CanAlaska Uranium will offset losses from the drop in CanAlaska Uranium's long position.| YPF Sociedad vs. Eshallgo Class A | YPF Sociedad vs. Amtech Systems | YPF Sociedad vs. Gold Fields Ltd | YPF Sociedad vs. Aegean Airlines SA |
| CanAlaska Uranium vs. Petroleo Brasileiro Petrobras | CanAlaska Uranium vs. Equinor ASA ADR | CanAlaska Uranium vs. Eni SpA ADR | CanAlaska Uranium 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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