Correlation Between Airbnb and Yatra Online
Can any of the company-specific risk be diversified away by investing in both Airbnb 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 Airbnb and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbnb Inc and Yatra Online, you can compare the effects of market volatilities on Airbnb 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 Airbnb with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbnb and Yatra Online.
Diversification Opportunities for Airbnb and Yatra Online
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Airbnb and Yatra is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Airbnb Inc and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Airbnb 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 Airbnb Inc 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 has no effect on the direction of Airbnb i.e., Airbnb and Yatra Online go up and down completely randomly.
Pair Corralation between Airbnb and Yatra Online
Given the investment horizon of 90 days Airbnb Inc is expected to generate 0.62 times more return on investment than Yatra Online. However, Airbnb Inc is 1.61 times less risky than Yatra Online. It trades about -0.02 of its potential returns per unit of risk. Yatra Online is currently generating about -0.03 per unit of risk. If you would invest 14,701 in Airbnb Inc on October 25, 2024 and sell it today you would lose (1,376) from holding Airbnb Inc or give up 9.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbnb Inc vs. Yatra Online
Performance |
| Timeline |
| Airbnb Inc |
| Yatra Online |
Airbnb and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbnb and Yatra Online
The main advantage of trading using opposite Airbnb and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbnb 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.| Airbnb vs. Norwegian Cruise Line | Airbnb vs. Royal Caribbean Cruises | Airbnb vs. Expedia Group | Airbnb vs. Booking Holdings |
| Yatra Online vs. Despegar Corp | Yatra Online vs. Lindblad Expeditions Holdings | Yatra Online vs. Trip Group Ltd | Yatra Online vs. Travel Leisure 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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