Correlation Between YPF SA and Telecom Argentina
Can any of the company-specific risk be diversified away by investing in both YPF SA and Telecom Argentina 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 Telecom Argentina 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 Telecom Argentina, you can compare the effects of market volatilities on YPF SA and Telecom Argentina 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 Telecom Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Telecom Argentina.
Diversification Opportunities for YPF SA and Telecom Argentina
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between YPF and Telecom is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Telecom Argentina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Argentina 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 Telecom Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Argentina has no effect on the direction of YPF SA i.e., YPF SA and Telecom Argentina go up and down completely randomly.
Pair Corralation between YPF SA and Telecom Argentina
Assuming the 90 days trading horizon YPF SA D is expected to generate 0.82 times more return on investment than Telecom Argentina. However, YPF SA D is 1.22 times less risky than Telecom Argentina. It trades about 0.27 of its potential returns per unit of risk. Telecom Argentina is currently generating about -0.01 per unit of risk. If you would invest 4,370,000 in YPF SA D on September 25, 2024 and sell it today you would earn a total of 670,000 from holding YPF SA D or generate 15.33% 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. Telecom Argentina
Performance |
| Timeline |
| YPF SA D |
| Telecom Argentina |
YPF SA and Telecom Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Telecom Argentina
The main advantage of trading using opposite YPF SA and Telecom Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Telecom Argentina 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 Telecom Argentina will offset losses from the drop in Telecom Argentina'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 |
| Telecom Argentina vs. Grupo Televisa SAB | Telecom Argentina vs. YPF SA D | Telecom Argentina vs. Capex SA | Telecom Argentina vs. Carboclor |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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