Correlation Between YPF Sociedad and Sugarmade

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Can any of the company-specific risk be diversified away by investing in both YPF Sociedad and Sugarmade 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 Sugarmade 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 Sugarmade, you can compare the effects of market volatilities on YPF Sociedad and Sugarmade 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 Sugarmade. Check out your portfolio center. Please also check ongoing floating volatility patterns of YPF Sociedad and Sugarmade.

Diversification Opportunities for YPF Sociedad and Sugarmade

-0.9
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between YPF and Sugarmade is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding YPF Sociedad Anonima and Sugarmade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugarmade 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 Sugarmade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugarmade has no effect on the direction of YPF Sociedad i.e., YPF Sociedad and Sugarmade go up and down completely randomly.

Pair Corralation between YPF Sociedad and Sugarmade

Considering the 90-day investment horizon YPF Sociedad is expected to generate 57.43 times less return on investment than Sugarmade. But when comparing it to its historical volatility, YPF Sociedad Anonima is 37.79 times less risky than Sugarmade. It trades about 0.1 of its potential returns per unit of risk. Sugarmade is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.03  in Sugarmade on September 28, 2024 and sell it today you would lose (0.02) from holding Sugarmade or give up 66.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy98.99%
ValuesDaily Returns

YPF Sociedad Anonima  vs.  Sugarmade

 Performance 
       Timeline  
YPF Sociedad Anonima 

Risk-Adjusted Performance

34 of 100

 
Weak
 
Strong
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.
Sugarmade 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Sugarmade are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, Sugarmade exhibited solid returns over the last few months and may actually be approaching a breakup point.

YPF Sociedad and Sugarmade Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with YPF Sociedad and Sugarmade

The main advantage of trading using opposite YPF Sociedad and Sugarmade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YPF Sociedad position performs unexpectedly, Sugarmade 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 Sugarmade will offset losses from the drop in Sugarmade's long position.
The idea behind YPF Sociedad Anonima and Sugarmade 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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