Correlation Between YPF Sociedad and Strattner Financial
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Strattner Financial 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 Strattner Financial 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 Strattner Financial Group, you can compare the effects of market volatilities on YPF Sociedad and Strattner Financial 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 Strattner Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Strattner Financial.
Diversification Opportunities for YPF Sociedad and Strattner Financial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YPF and Strattner is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Strattner Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strattner Financial 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 Strattner Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strattner Financial has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Strattner Financial go up and down completely randomly.
Pair Corralation between YPF Sociedad and Strattner Financial
Considering the 90-day investment horizon YPF Sociedad is expected to generate 13.57 times less return on investment than Strattner Financial. But when comparing it to its historical volatility, YPF Sociedad Anonima is 35.8 times less risky than Strattner Financial. It trades about 0.22 of its potential returns per unit of risk. Strattner Financial Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Strattner Financial Group on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Strattner Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. Strattner Financial Group
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Strattner Financial |
YPF Sociedad and Strattner Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Strattner Financial
The main advantage of trading using opposite YPF Sociedad and Strattner Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Strattner Financial 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 Strattner Financial will offset losses from the drop in Strattner Financial'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 |
| Strattner Financial vs. Seadrill Limited | Strattner Financial vs. Noble plc | Strattner Financial vs. Borr Drilling | Strattner Financial vs. SCOR PK |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |