Correlation Between YPF SA and Walt Disney
Can any of the company-specific risk be diversified away by investing in both YPF SA and Walt Disney 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 Walt Disney 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 Walt Disney, you can compare the effects of market volatilities on YPF SA and Walt Disney 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 Walt Disney. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Walt Disney.
Diversification Opportunities for YPF SA and Walt Disney
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YPF and Walt is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Walt Disney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walt Disney 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 Walt Disney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walt Disney has no effect on the direction of YPF SA i.e., YPF SA and Walt Disney go up and down completely randomly.
Pair Corralation between YPF SA and Walt Disney
Assuming the 90 days trading horizon YPF SA D is expected to generate 1.19 times more return on investment than Walt Disney. However, YPF SA is 1.19 times more volatile than Walt Disney. It trades about 0.16 of its potential returns per unit of risk. Walt Disney is currently generating about 0.09 per unit of risk. If you would invest 1,614,925 in YPF SA D on August 31, 2024 and sell it today you would earn a total of 2,902,575 from holding YPF SA D or generate 179.73% 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. Walt Disney
Performance |
| Timeline |
| YPF SA D |
| Walt Disney |
YPF SA and Walt Disney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Walt Disney
The main advantage of trading using opposite YPF SA and Walt Disney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Walt Disney 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 Walt Disney will offset losses from the drop in Walt Disney'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 |
| Walt Disney vs. Agrometal SAI | Walt Disney vs. Transportadora de Gas | Walt Disney vs. Harmony Gold Mining | Walt Disney vs. Telecom Argentina |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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