Correlation Between YPF Sociedad and PetroShale
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and PetroShale 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 PetroShale 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 PetroShale, you can compare the effects of market volatilities on YPF Sociedad and PetroShale 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 PetroShale. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and PetroShale.
Diversification Opportunities for YPF Sociedad and PetroShale
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YPF and PetroShale is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and PetroShale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroShale 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 PetroShale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroShale has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and PetroShale go up and down completely randomly.
Pair Corralation between YPF Sociedad and PetroShale
Considering the 90-day investment horizon YPF Sociedad Anonima is expected to generate 1.16 times more return on investment than PetroShale. However, YPF Sociedad is 1.16 times more volatile than PetroShale. It trades about 0.11 of its potential returns per unit of risk. PetroShale is currently generating about -0.01 per unit of risk. If you would invest 740.00 in YPF Sociedad Anonima on August 29, 2024 and sell it today you would earn a total of 3,263 from holding YPF Sociedad Anonima or generate 440.95% 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. PetroShale
Performance |
| Timeline |
| YPF Sociedad Anonima |
| PetroShale |
YPF Sociedad and PetroShale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and PetroShale
The main advantage of trading using opposite YPF Sociedad and PetroShale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, PetroShale 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 PetroShale will offset losses from the drop in PetroShale'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 |
| PetroShale vs. Yamaha Motor Co | PetroShale vs. Nitto Denko Corp | PetroShale vs. Farmers Merchants Bancorp | PetroShale vs. Furukawa Electric Co |
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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