Correlation Between YPF SA and Banco De
Can any of the company-specific risk be diversified away by investing in both YPF SA and Banco De 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 Banco De 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 Banco de Valores, you can compare the effects of market volatilities on YPF SA and Banco De 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 Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and Banco De.
Diversification Opportunities for YPF SA and Banco De
Almost no diversification
The 3 months correlation between YPF and Banco is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Banco de Valores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Valores 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Valores has no effect on the direction of YPF SA i.e., YPF SA and Banco De go up and down completely randomly.
Pair Corralation between YPF SA and Banco De
Assuming the 90 days trading horizon YPF SA D is expected to under-perform the Banco De. In addition to that, YPF SA is 2.25 times more volatile than Banco de Valores. It trades about -0.19 of its total potential returns per unit of risk. Banco de Valores is currently generating about -0.16 per unit of volatility. If you would invest 45,150 in Banco de Valores on November 2, 2024 and sell it today you would lose (1,550) from holding Banco de Valores or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
YPF SA D vs. Banco de Valores
Performance |
| Timeline |
| YPF SA D |
| Banco de Valores |
YPF SA and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YPF SA and Banco De
The main advantage of trading using opposite YPF SA and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De'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 |
| Banco De vs. Harmony Gold Mining | Banco De vs. Agrometal SAI | Banco De vs. Transportadora de Gas | Banco De 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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