Correlation Between YPF SA and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both YPF SA and Grupo Supervielle 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 Supervielle 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 Supervielle SA, you can compare the effects of market volatilities on YPF SA and Grupo Supervielle 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 Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Grupo Supervielle.
Diversification Opportunities for YPF SA and Grupo Supervielle
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YPF and Grupo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of YPF SA i.e., YPF SA and Grupo Supervielle go up and down completely randomly.
Pair Corralation between YPF SA and Grupo Supervielle
Assuming the 90 days trading horizon YPF SA is expected to generate 3.02 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, YPF SA D is 1.95 times less risky than Grupo Supervielle. It trades about 0.27 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 242,000 in Grupo Supervielle SA on September 25, 2024 and sell it today you would earn a total of 128,000 from holding Grupo Supervielle SA or generate 52.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YPF SA D vs. Grupo Supervielle SA
Performance |
| Timeline |
| YPF SA D |
| Grupo Supervielle |
YPF SA and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Grupo Supervielle
The main advantage of trading using opposite YPF SA and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Grupo Supervielle 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 Supervielle will offset losses from the drop in Grupo Supervielle'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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