Correlation Between YPF SA and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both YPF SA and Grupo Financiero 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 Grupo Financiero 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 Grupo Financiero Galicia, you can compare the effects of market volatilities on YPF SA and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Grupo Financiero.
Diversification Opportunities for YPF SA and Grupo Financiero
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between YPF and Grupo is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Grupo Financiero Galicia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Galicia 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Galicia has no effect on the direction of YPF SA i.e., YPF SA and Grupo Financiero go up and down completely randomly.
Pair Corralation between YPF SA and Grupo Financiero
Assuming the 90 days trading horizon YPF SA D is expected to generate 1.62 times more return on investment than Grupo Financiero. However, YPF SA is 1.62 times more volatile than Grupo Financiero Galicia. It trades about 0.75 of its potential returns per unit of risk. Grupo Financiero Galicia is currently generating about 0.11 per unit of risk. If you would invest 2,845,000 in YPF SA D on August 31, 2024 and sell it today you would earn a total of 1,672,500 from holding YPF SA D or generate 58.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF SA D vs. Grupo Financiero Galicia
Performance |
| Timeline |
| YPF SA D |
| Grupo Financiero Galicia |
YPF SA and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Grupo Financiero
The main advantage of trading using opposite YPF SA and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero'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 |
| Grupo Financiero vs. Telecom Argentina | Grupo Financiero vs. Harmony Gold Mining | Grupo Financiero vs. Compania de Transporte | Grupo Financiero vs. Transportadora de Gas |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |