Correlation Between YPF Sociedad and Savoy Energy
Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Savoy 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 Savoy 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 Savoy Energy Corp, you can compare the effects of market volatilities on YPF Sociedad and Savoy 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 Savoy Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Savoy Energy.
Diversification Opportunities for YPF Sociedad and Savoy Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YPF and Savoy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Savoy Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savoy Energy 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 Savoy Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savoy Energy Corp has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Savoy Energy go up and down completely randomly.
Pair Corralation between YPF Sociedad and Savoy Energy
If you would invest 2,455 in YPF Sociedad Anonima on August 31, 2024 and sell it today you would earn a total of 1,516 from holding YPF Sociedad Anonima or generate 61.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF Sociedad Anonima vs. Savoy Energy Corp
Performance |
| Timeline |
| YPF Sociedad Anonima |
| Savoy Energy Corp |
YPF Sociedad and Savoy Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF Sociedad and Savoy Energy
The main advantage of trading using opposite YPF Sociedad and Savoy Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Savoy 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 Savoy Energy will offset losses from the drop in Savoy 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 |
| Savoy Energy vs. Petroleo Brasileiro Petrobras | Savoy Energy vs. Equinor ASA ADR | Savoy Energy vs. Eni SpA ADR | Savoy Energy 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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