Correlation Between YPF Sociedad and Gear Energy
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Gear Energy 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 Gear Energy 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 Gear Energy, you can compare the effects of market volatilities on YPF Sociedad and Gear Energy 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 Gear Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Gear Energy.
Diversification Opportunities for YPF Sociedad and Gear Energy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YPF and Gear is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Gear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gear Energy 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 Gear Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gear Energy has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Gear Energy go up and down completely randomly.
Pair Corralation between YPF Sociedad and Gear Energy
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 1.11 times more return on investment than Gear Energy. However, YPF Sociedad is 1.11 times more volatile than Gear Energy. It trades about -0.32 of its potential returns per unit of risk. Gear Energy is currently generating about -0.37 per unit of risk. If you would invest 4,335 in YPF Sociedad Anonima on November 22, 2024 and sell it today you would lose (624.00) from holding YPF Sociedad Anonima or give up 14.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. Gear Energy
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Gear Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
YPF Sociedad and Gear Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Gear Energy
The main advantage of trading using opposite YPF Sociedad and Gear Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Gear Energy 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 Gear Energy will offset losses from the drop in Gear Energy's long position.| YPF Sociedad vs. National Fuel Gas | YPF Sociedad vs. Eni SpA ADR | YPF Sociedad vs. Ecopetrol SA ADR | YPF Sociedad vs. TotalEnergies SE ADR |
| Gear Energy vs. Tamarack Valley Energy | Gear Energy vs. MEG Energy Corp | Gear Energy vs. Cardinal Energy | Gear Energy vs. Whitecap Resources |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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