Correlation Between BP PLC and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both BP PLC and YPF Sociedad 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 BP PLC and YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BP PLC ADR and YPF Sociedad Anonima, you can compare the effects of market volatilities on BP PLC and YPF Sociedad 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 BP PLC with a short position of YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of BP PLC and YPF Sociedad.
Diversification Opportunities for BP PLC and YPF Sociedad
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BP PLC and YPF is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding BP PLC ADR and YPF Sociedad Anonima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF Sociedad Anonima and BP PLC 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 BP PLC ADR are associated (or correlated) with YPF Sociedad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF Sociedad Anonima has no effect on the direction of BP PLC i.e., BP PLC and YPF Sociedad go up and down completely randomly.
Pair Corralation between BP PLC and YPF Sociedad
Allowing for the 90-day total investment horizon BP PLC is expected to generate 5.79 times less return on investment than YPF Sociedad. But when comparing it to its historical volatility, BP PLC ADR is 2.25 times less risky than YPF Sociedad. It trades about 0.05 of its potential returns per unit of risk. YPF Sociedad Anonima is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 372.00 in YPF Sociedad Anonima on February 4, 2024 and sell it today you would earn a total of 1,966 from holding YPF Sociedad Anonima or generate 528.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
BP PLC ADR vs. YPF Sociedad Anonima
Performance |
Timeline |
BP PLC ADR |
YPF Sociedad Anonima |
BP PLC and YPF Sociedad Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BP PLC and YPF Sociedad
The main advantage of trading using opposite BP PLC and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BP PLC position performs unexpectedly, YPF Sociedad 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 YPF Sociedad will offset losses from the drop in YPF Sociedad's long position.BP PLC vs. Skyworks Solutions | BP PLC vs. Large Cap Fund | BP PLC vs. Microvast Holdings | BP PLC vs. Dominos Pizza |
YPF Sociedad vs. Skyworks Solutions | YPF Sociedad vs. Large Cap Fund | YPF Sociedad vs. Microvast Holdings | YPF Sociedad vs. Dominos Pizza |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Stocks Directory Find actively traded stocks across global markets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |