Correlation Between YATRA ONLINE and American Airlines
Can any of the company-specific risk be diversified away by investing in both YATRA ONLINE and American Airlines 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 YATRA ONLINE and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YATRA ONLINE DL 0001 and American Airlines Group, you can compare the effects of market volatilities on YATRA ONLINE and American Airlines 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 YATRA ONLINE with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of YATRA ONLINE and American Airlines.
Diversification Opportunities for YATRA ONLINE and American Airlines
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between YATRA and American is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding YATRA ONLINE DL 0001 and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and YATRA ONLINE 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 YATRA ONLINE DL 0001 are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of YATRA ONLINE i.e., YATRA ONLINE and American Airlines go up and down completely randomly.
Pair Corralation between YATRA ONLINE and American Airlines
Assuming the 90 days horizon YATRA ONLINE DL 0001 is expected to under-perform the American Airlines. In addition to that, YATRA ONLINE is 1.43 times more volatile than American Airlines Group. It trades about -0.01 of its total potential returns per unit of risk. American Airlines Group is currently generating about 0.02 per unit of volatility. If you would invest 1,328 in American Airlines Group on September 3, 2024 and sell it today you would earn a total of 98.00 from holding American Airlines Group or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YATRA ONLINE DL 0001 vs. American Airlines Group
Performance |
| Timeline |
| YATRA ONLINE DL |
| American Airlines |
YATRA ONLINE and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YATRA ONLINE and American Airlines
The main advantage of trading using opposite YATRA ONLINE and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YATRA ONLINE position performs unexpectedly, American Airlines 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 American Airlines will offset losses from the drop in American Airlines' long position.| YATRA ONLINE vs. Cal Maine Foods | YATRA ONLINE vs. Lery Seafood Group | YATRA ONLINE vs. PENN NATL GAMING | YATRA ONLINE vs. ANGLER GAMING PLC |
| American Airlines vs. Delta Air Lines | American Airlines vs. AIR CHINA LTD | American Airlines vs. RYANAIR HLDGS ADR | American Airlines vs. Southwest Airlines Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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