Correlation Between YPF SA and Chevron Corp

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

Diversification Opportunities for YPF SA and Chevron Corp

0.0

Correlation Coefficient

YPF SA  Chevron Corp

Pay attention - limited upside

The 3 months correlation between YPF and Chevron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YPF SA D and Chevron Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp CEDEAR 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 Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp CEDEAR has no effect on the direction of YPF SA i.e., YPF SA and Chevron Corp go up and down completely randomly.

Pair Corralation between YPF SA and Chevron Corp

Assuming the 90 days trading horizon YPF SA is expected to generate 3.12 times less return on investment than Chevron Corp. In addition to that, YPF SA is 1.82 times more volatile than Chevron Corp CEDEAR. It trades about 0.04 of its total potential returns per unit of risk. Chevron Corp CEDEAR is currently generating about 0.22 per unit of volatility. If you would invest  990,000  in Chevron Corp CEDEAR on April 22, 2025 and sell it today you would earn a total of  207,500  from holding Chevron Corp CEDEAR or generate 20.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YPF SA D  vs.  Chevron Corp CEDEAR

YPF SA D

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in YPF SA D are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, YPF SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Chevron Corp CEDEAR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corp CEDEAR are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Chevron Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YPF SA and Chevron Corp

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

The idea behind YPF SA D and Chevron Corp CEDEAR 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.