Correlation Between YATRA ONLINE and Lenovo Group
Can any of the company-specific risk be diversified away by investing in both YATRA ONLINE and Lenovo Group 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 Lenovo Group 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 Lenovo Group Limited, you can compare the effects of market volatilities on YATRA ONLINE and Lenovo Group 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 Lenovo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of YATRA ONLINE and Lenovo Group.
Diversification Opportunities for YATRA ONLINE and Lenovo Group
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between YATRA and Lenovo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding YATRA ONLINE DL 0001 and Lenovo Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenovo Group Limited 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 Lenovo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenovo Group Limited has no effect on the direction of YATRA ONLINE i.e., YATRA ONLINE and Lenovo Group go up and down completely randomly.
Pair Corralation between YATRA ONLINE and Lenovo Group
Assuming the 90 days horizon YATRA ONLINE DL 0001 is expected to under-perform the Lenovo Group. In addition to that, YATRA ONLINE is 1.11 times more volatile than Lenovo Group Limited. It trades about -0.15 of its total potential returns per unit of risk. Lenovo Group Limited is currently generating about -0.05 per unit of volatility. If you would invest 2,614 in Lenovo Group Limited on January 16, 2025 and sell it today you would lose (774.00) from holding Lenovo Group Limited or give up 29.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YATRA ONLINE DL 0001 vs. Lenovo Group Limited
Performance |
| Timeline |
| YATRA ONLINE DL |
| Lenovo Group Limited |
YATRA ONLINE and Lenovo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YATRA ONLINE and Lenovo Group
The main advantage of trading using opposite YATRA ONLINE and Lenovo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YATRA ONLINE position performs unexpectedly, Lenovo Group 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 Lenovo Group will offset losses from the drop in Lenovo Group's long position.| YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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