Correlation Between YPF Sociedad and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on YPF Sociedad and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and InPlay Oil.
Diversification Opportunities for YPF Sociedad and InPlay Oil
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YPF and InPlay is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and InPlay Oil go up and down completely randomly.
Pair Corralation between YPF Sociedad and InPlay Oil
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 1.82 times more return on investment than InPlay Oil. However, YPF Sociedad is 1.82 times more volatile than InPlay Oil Corp. It trades about 0.11 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.03 per unit of risk. If you would invest 1,054 in YPF Sociedad Anonima on August 26, 2024 and sell it today you would earn a total of 2,949 from holding YPF Sociedad Anonima or generate 279.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. InPlay Oil Corp
Performance |
| Timeline |
| YPF Sociedad Anonima |
| InPlay Oil Corp |
YPF Sociedad and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and InPlay Oil
The main advantage of trading using opposite YPF Sociedad and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil'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 |
| InPlay Oil vs. Petroleo Brasileiro Petrobras | InPlay Oil vs. Equinor ASA ADR | InPlay Oil vs. Eni SpA ADR | InPlay Oil 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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