Correlation Between YPF Sociedad and KonaTel

Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and KonaTel 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 Sociedad and KonaTel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YPF Sociedad Anonima and KonaTel, you can compare the effects of market volatilities on YPF Sociedad and KonaTel 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 Sociedad with a short position of KonaTel. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and KonaTel.

Diversification Opportunities for YPF Sociedad and KonaTel

-0.89

Correlation Coefficient

YPF Sociedad  KonaTel

Pay attention - limited upside

The 3 months correlation between YPF and KonaTel is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and KonaTel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KonaTel and YPF Sociedad 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 Sociedad Anonima are associated (or correlated) with KonaTel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KonaTel has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and KonaTel go up and down completely randomly.

Pair Corralation between YPF Sociedad and KonaTel

Considering the 90-day investment horizon YPF Sociedad is expected to generate 1.6 times less return on investment than KonaTel. But when comparing it to its historical volatility, YPF Sociedad Anonima is 3.98 times less risky than KonaTel. It trades about 0.12 of its potential returns per unit of risk. KonaTel is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  20.00  in KonaTel on September 29, 2024 and sell it today you would earn a total of  0.00  from holding KonaTel or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

YPF Sociedad Anonima  vs.  KonaTel

YPF Sociedad Anonima

Risk-Adjusted Performance

34 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in YPF Sociedad Anonima are ranked lower than 34 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, YPF Sociedad reported solid returns over the last few months and may actually be approaching a breakup point.

KonaTel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KonaTel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with YPF Sociedad and KonaTel

The main advantage of trading using opposite YPF Sociedad and KonaTel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, KonaTel 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 KonaTel will offset losses from the drop in KonaTel's long position.

The idea behind YPF Sociedad Anonima and KonaTel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.