Correlation Between YPF SA and IRSA Inversiones
Can any of the company-specific risk be diversified away by investing in both YPF SA and IRSA Inversiones 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 IRSA Inversiones 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 IRSA Inversiones y, you can compare the effects of market volatilities on YPF SA and IRSA Inversiones 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 IRSA Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and IRSA Inversiones.
Diversification Opportunities for YPF SA and IRSA Inversiones
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YPF and IRSA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and IRSA Inversiones y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Inversiones y 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 IRSA Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Inversiones y has no effect on the direction of YPF SA i.e., YPF SA and IRSA Inversiones go up and down completely randomly.
Pair Corralation between YPF SA and IRSA Inversiones
Assuming the 90 days trading horizon YPF SA D is expected to under-perform the IRSA Inversiones. But the stock apears to be less risky and, when comparing its historical volatility, YPF SA D is 1.14 times less risky than IRSA Inversiones. The stock trades about -0.19 of its potential returns per unit of risk. The IRSA Inversiones y is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 187,000 in IRSA Inversiones y on November 2, 2024 and sell it today you would lose (3,500) from holding IRSA Inversiones y or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
YPF SA D vs. IRSA Inversiones y
Performance |
| Timeline |
| YPF SA D |
| IRSA Inversiones y |
YPF SA and IRSA Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and IRSA Inversiones
The main advantage of trading using opposite YPF SA and IRSA Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, IRSA Inversiones 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 IRSA Inversiones will offset losses from the drop in IRSA Inversiones' 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 |
| IRSA Inversiones vs. Agrometal SAI | IRSA Inversiones vs. Harmony Gold Mining | IRSA Inversiones vs. Telecom Argentina | IRSA Inversiones 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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