Correlation Between Lamar Advertising and YATRA ONLINE
Can any of the company-specific risk be diversified away by investing in both Lamar Advertising 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 Lamar Advertising and YATRA ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamar Advertising and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on Lamar Advertising 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 Lamar Advertising with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and YATRA ONLINE.
Diversification Opportunities for Lamar Advertising and YATRA ONLINE
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lamar and YATRA is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising i.e., Lamar Advertising and YATRA ONLINE go up and down completely randomly.
Pair Corralation between Lamar Advertising and YATRA ONLINE
Assuming the 90 days trading horizon Lamar Advertising is expected to generate 0.47 times more return on investment than YATRA ONLINE. However, Lamar Advertising is 2.15 times less risky than YATRA ONLINE. It trades about -0.06 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 12,375 in Lamar Advertising on October 23, 2024 and sell it today you would lose (375.00) from holding Lamar Advertising or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. YATRA ONLINE DL 0001
Performance |
| Timeline |
| Lamar Advertising |
| YATRA ONLINE DL |
Lamar Advertising and YATRA ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and YATRA ONLINE
The main advantage of trading using opposite Lamar Advertising and YATRA ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising 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.| Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc |
| YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc | YATRA ONLINE vs. Apple Inc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |