Correlation Between SOFI TECHNOLOGIES and YATRA ONLINE
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and YATRA ONLINE 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 SOFI TECHNOLOGIES and YATRA ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and YATRA ONLINE 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 SOFI TECHNOLOGIES with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and YATRA ONLINE.
Diversification Opportunities for SOFI TECHNOLOGIES and YATRA ONLINE
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOFI and YATRA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and YATRA ONLINE DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YATRA ONLINE DL and SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES are associated (or correlated) with YATRA ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YATRA ONLINE DL has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and YATRA ONLINE go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and YATRA ONLINE
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 1.34 times more return on investment than YATRA ONLINE. However, SOFI TECHNOLOGIES is 1.34 times more volatile than YATRA ONLINE DL 0001. It trades about 0.39 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about -0.15 per unit of risk. If you would invest 1,016 in SOFI TECHNOLOGIES on August 25, 2024 and sell it today you would earn a total of 391.00 from holding SOFI TECHNOLOGIES or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. YATRA ONLINE DL 0001
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| YATRA ONLINE DL |
SOFI TECHNOLOGIES and YATRA ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and YATRA ONLINE
The main advantage of trading using opposite SOFI TECHNOLOGIES and YATRA ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, YATRA ONLINE 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 YATRA ONLINE will offset losses from the drop in YATRA ONLINE's long position.| SOFI TECHNOLOGIES vs. Suntory Beverage Food | SOFI TECHNOLOGIES vs. ScanSource | SOFI TECHNOLOGIES vs. Insurance Australia Group | SOFI TECHNOLOGIES vs. SCANSOURCE |
| YATRA ONLINE vs. GRIFFIN MINING LTD | YATRA ONLINE vs. INTERSHOP Communications Aktiengesellschaft | YATRA ONLINE vs. Charter Communications | YATRA ONLINE vs. Spirent Communications plc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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