Correlation Between YPF SA and Banco Hipotecario
Can any of the company-specific risk be diversified away by investing in both YPF SA and Banco Hipotecario 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 Banco Hipotecario 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 Banco Hipotecario SA, you can compare the effects of market volatilities on YPF SA and Banco Hipotecario 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 Banco Hipotecario. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Banco Hipotecario.
Diversification Opportunities for YPF SA and Banco Hipotecario
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YPF and Banco is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Banco Hipotecario SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Hipotecario 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 Banco Hipotecario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Hipotecario has no effect on the direction of YPF SA i.e., YPF SA and Banco Hipotecario go up and down completely randomly.
Pair Corralation between YPF SA and Banco Hipotecario
Assuming the 90 days trading horizon YPF SA D is expected to generate 0.89 times more return on investment than Banco Hipotecario. However, YPF SA D is 1.13 times less risky than Banco Hipotecario. It trades about 0.76 of its potential returns per unit of risk. Banco Hipotecario SA is currently generating about 0.3 per unit of risk. If you would invest 2,835,000 in YPF SA D on September 1, 2024 and sell it today you would earn a total of 1,682,500 from holding YPF SA D or generate 59.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF SA D vs. Banco Hipotecario SA
Performance |
| Timeline |
| YPF SA D |
| Banco Hipotecario |
YPF SA and Banco Hipotecario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Banco Hipotecario
The main advantage of trading using opposite YPF SA and Banco Hipotecario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Banco Hipotecario 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 Banco Hipotecario will offset losses from the drop in Banco Hipotecario's long position.| YPF SA vs. Grupo Financiero Galicia | YPF SA vs. Pampa Energia SA | YPF SA vs. Banco Macro SA | YPF SA vs. Aluar Aluminio Argentino |
| Banco Hipotecario vs. Harmony Gold Mining | Banco Hipotecario vs. Compania de Transporte | Banco Hipotecario vs. Agrometal SAI | Banco Hipotecario vs. United States Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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