Correlation Between YPF Sociedad and Journey Energy
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Journey 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 Journey 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 Journey Energy, you can compare the effects of market volatilities on YPF Sociedad and Journey 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 Journey Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Journey Energy.
Diversification Opportunities for YPF Sociedad and Journey Energy
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YPF and Journey is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Journey Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Journey 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 Journey Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Journey Energy has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Journey Energy go up and down completely randomly.
Pair Corralation between YPF Sociedad and Journey Energy
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 0.96 times more return on investment than Journey Energy. However, YPF Sociedad Anonima is 1.04 times less risky than Journey Energy. It trades about 0.88 of its potential returns per unit of risk. Journey Energy is currently generating about -0.05 per unit of risk. If you would invest 2,455 in YPF Sociedad Anonima on August 31, 2024 and sell it today you would earn a total of 1,575 from holding YPF Sociedad Anonima or generate 64.15% 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. Journey Energy
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Journey Energy |
YPF Sociedad and Journey Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Journey Energy
The main advantage of trading using opposite YPF Sociedad and Journey Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Journey 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 Journey Energy will offset losses from the drop in Journey Energy's long position.| YPF Sociedad vs. RLJ Lodging Trust | YPF Sociedad vs. Aquagold International | YPF Sociedad vs. Stepstone Group | YPF Sociedad vs. Morningstar Unconstrained Allocation |
| Journey Energy vs. Frontera Energy Corp | Journey Energy vs. Eco Oil Gas | Journey Energy vs. Total Helium | Journey Energy vs. Avanti Energy |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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