Correlation Between Plains All and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Plains All 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 Plains All and YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plains All American and YPF Sociedad Anonima, you can compare the effects of market volatilities on Plains All 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 Plains All with a short position of YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plains All and YPF Sociedad.
Diversification Opportunities for Plains All and YPF Sociedad
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Plains and YPF is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Plains All American 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 Plains All 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 Plains All American 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 Plains All i.e., Plains All and YPF Sociedad go up and down completely randomly.
Pair Corralation between Plains All and YPF Sociedad
Considering the 90-day investment horizon Plains All is expected to generate 4.24 times less return on investment than YPF Sociedad. But when comparing it to its historical volatility, Plains All American is 4.55 times less risky than YPF Sociedad. It trades about 0.09 of its potential returns per unit of risk. YPF Sociedad Anonima is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,083 in YPF Sociedad Anonima on September 5, 2025 and sell it today you would earn a total of 617.50 from holding YPF Sociedad Anonima or generate 20.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plains All American vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Plains All American |
| YPF Sociedad Anonima |
Plains All and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plains All and YPF Sociedad
The main advantage of trading using opposite Plains All and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plains All 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.| Plains All vs. JB Hunt Transport | Plains All vs. Quantum Medical Transport | Plains All vs. Smith Douglas Homes | Plains All vs. Gaztransport Technigaz SA |
| YPF Sociedad vs. Unity Software | YPF Sociedad vs. Take Two Interactive Software | YPF Sociedad vs. PSI Software AG | YPF Sociedad vs. Natural Health Farm |
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.
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