Correlation Between ANT and Yatra Online
Can any of the company-specific risk be diversified away by investing in both ANT 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 ANT and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Yatra Online Limited, you can compare the effects of market volatilities on ANT 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 ANT with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Yatra Online.
Diversification Opportunities for ANT and Yatra Online
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and Yatra is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Yatra Online Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online Limited and ANT 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 ANT 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 Limited has no effect on the direction of ANT i.e., ANT and Yatra Online go up and down completely randomly.
Pair Corralation between ANT and Yatra Online
Assuming the 90 days trading horizon ANT is expected to generate 35.06 times more return on investment than Yatra Online. However, ANT is 35.06 times more volatile than Yatra Online Limited. It trades about 0.12 of its potential returns per unit of risk. Yatra Online Limited is currently generating about -0.08 per unit of risk. If you would invest 933.00 in ANT on October 20, 2024 and sell it today you would lose (786.00) from holding ANT or give up 84.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.61% |
| Values | Daily Returns |
ANT vs. Yatra Online Limited
Performance |
| Timeline |
| ANT |
| Yatra Online Limited |
ANT and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Yatra Online
The main advantage of trading using opposite ANT and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.The idea behind ANT and Yatra Online Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yatra Online vs. Electronics Mart India | Yatra Online vs. Healthcare Global Enterprises | Yatra Online vs. Zydus Wellness Limited | Yatra Online vs. Fortis Healthcare Limited |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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