Correlation Between YPF Sociedad and Pine Cliff
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Pine Cliff 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 Pine Cliff 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 Pine Cliff Energy, you can compare the effects of market volatilities on YPF Sociedad and Pine Cliff 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 Pine Cliff. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Pine Cliff.
Diversification Opportunities for YPF Sociedad and Pine Cliff
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YPF and Pine is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Pine Cliff Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pine Cliff 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 Pine Cliff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pine Cliff Energy has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Pine Cliff go up and down completely randomly.
Pair Corralation between YPF Sociedad and Pine Cliff
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 0.77 times more return on investment than Pine Cliff. However, YPF Sociedad Anonima is 1.3 times less risky than Pine Cliff. It trades about 0.58 of its potential returns per unit of risk. Pine Cliff Energy is currently generating about -0.09 per unit of risk. If you would invest 2,121 in YPF Sociedad Anonima on August 30, 2024 and sell it today you would earn a total of 1,850 from holding YPF Sociedad Anonima or generate 87.22% 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. Pine Cliff Energy
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Pine Cliff Energy |
YPF Sociedad and Pine Cliff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Pine Cliff
The main advantage of trading using opposite YPF Sociedad and Pine Cliff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Pine Cliff 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 Pine Cliff will offset losses from the drop in Pine Cliff'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 |
| Pine Cliff vs. Athabasca Oil Corp | Pine Cliff vs. Cardinal Energy | Pine Cliff vs. Tamarack Valley Energy | Pine Cliff vs. Saturn Oil Gas |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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