Correlation Between YPF SA and Autopistas Del

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Can any of the company-specific risk be diversified away by investing in both YPF SA and Autopistas Del 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 SA and Autopistas Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YPF SA D and Autopistas del Sol, you can compare the effects of market volatilities on YPF SA and Autopistas Del 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 SA with a short position of Autopistas Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Autopistas Del.

Diversification Opportunities for YPF SA and Autopistas Del

YPFAutopistasDiversified AwayYPFAutopistasDiversified Away100%
0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between YPF and Autopistas is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Autopistas del Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopistas del Sol and YPF SA 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 SA D are associated (or correlated) with Autopistas Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopistas del Sol has no effect on the direction of YPF SA i.e., YPF SA and Autopistas Del go up and down completely randomly.

Pair Corralation between YPF SA and Autopistas Del

Assuming the 90 days trading horizon YPF SA D is expected to generate 1.09 times more return on investment than Autopistas Del. However, YPF SA is 1.09 times more volatile than Autopistas del Sol. It trades about 0.15 of its potential returns per unit of risk. Autopistas del Sol is currently generating about 0.14 per unit of risk. If you would invest  392,330  in YPF SA D on November 30, 2024 and sell it today you would earn a total of  3,845,170  from holding YPF SA D or generate 980.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

YPF SA D  vs.  Autopistas del Sol

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15YPFD AUSO
       Timeline  
YPF SA D 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days YPF SA D has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, YPF SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebFeb42,00044,00046,00048,00050,00052,00054,00056,000
Autopistas del Sol 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Autopistas del Sol has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb3,2003,4003,6003,8004,000

YPF SA and Autopistas Del Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.1-3.07-2.04-1.01-0.01720.971.982.993.995.0 0.0450.0500.0550.060
JavaScript chart by amCharts 3.21.15YPFD AUSO
       Returns  

Pair Trading with YPF SA and Autopistas Del

The main advantage of trading using opposite YPF SA and Autopistas Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Autopistas Del 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 Autopistas Del will offset losses from the drop in Autopistas Del's long position.
The idea behind YPF SA D and Autopistas del Sol pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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