Correlation Between Applied Materials and YATRA ONLINE
Can any of the company-specific risk be diversified away by investing in both Applied Materials 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 Applied Materials and YATRA ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Materials and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on Applied Materials 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 Applied Materials with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and YATRA ONLINE.
Diversification Opportunities for Applied Materials and YATRA ONLINE
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and YATRA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials 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 Applied Materials 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 Applied Materials 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 Applied Materials i.e., Applied Materials and YATRA ONLINE go up and down completely randomly.
Pair Corralation between Applied Materials and YATRA ONLINE
Assuming the 90 days horizon Applied Materials is expected to generate 0.71 times more return on investment than YATRA ONLINE. However, Applied Materials is 1.42 times less risky than YATRA ONLINE. It trades about 0.05 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about -0.02 per unit of risk. If you would invest 10,621 in Applied Materials on November 7, 2024 and sell it today you would earn a total of 6,829 from holding Applied Materials or generate 64.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Materials vs. YATRA ONLINE DL 0001
Performance |
| Timeline |
| Applied Materials |
| YATRA ONLINE DL |
Applied Materials and YATRA ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Materials and YATRA ONLINE
The main advantage of trading using opposite Applied Materials and YATRA ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials 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.| Applied Materials vs. Flutter Entertainment PLC | Applied Materials vs. BII Railway Transportation | Applied Materials vs. GOLD ROAD RES | Applied Materials vs. PARKEN Sport Entertainment |
| YATRA ONLINE vs. Eurasia Mining Plc | YATRA ONLINE vs. Zijin Mining Group | YATRA ONLINE vs. Air Transport Services | YATRA ONLINE vs. MINCO SILVER |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |