Correlation Between YPF SA and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both YPF SA and NYSE Composite 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 NYSE Composite 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 NYSE Composite, you can compare the effects of market volatilities on YPF SA and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF SA and NYSE Composite.
Diversification Opportunities for YPF SA and NYSE Composite
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between YPF and NYSE is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of YPF SA i.e., YPF SA and NYSE Composite go up and down completely randomly.
Pair Corralation between YPF SA and NYSE Composite
Assuming the 90 days trading horizon YPF SA D is expected to generate 4.37 times more return on investment than NYSE Composite. However, YPF SA is 4.37 times more volatile than NYSE Composite. It trades about 0.28 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.07 per unit of risk. If you would invest 2,249,180 in YPF SA D on February 10, 2024 and sell it today you would earn a total of 392,080 from holding YPF SA D or generate 17.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
YPF SA D vs. NYSE Composite
Performance |
Timeline |
YPF SA and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
YPF SA D
Pair trading matchups for YPF SA
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with YPF SA and NYSE Composite
The main advantage of trading using opposite YPF SA and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF SA position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite'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 |
NYSE Composite vs. NetSol Technologies | NYSE Composite vs. Modine Manufacturing | NYSE Composite vs. Vacasa Inc | NYSE Composite vs. BorgWarner |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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