Correlation Between Axfood AB and YATRA ONLINE
Can any of the company-specific risk be diversified away by investing in both Axfood AB 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 Axfood AB and YATRA ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on Axfood AB 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 Axfood AB with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and YATRA ONLINE.
Diversification Opportunities for Axfood AB and YATRA ONLINE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Axfood and YATRA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB 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 Axfood AB 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 Axfood AB 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 Axfood AB i.e., Axfood AB and YATRA ONLINE go up and down completely randomly.
Pair Corralation between Axfood AB and YATRA ONLINE
Assuming the 90 days trading horizon Axfood AB is expected to generate 0.67 times more return on investment than YATRA ONLINE. However, Axfood AB is 1.48 times less risky than YATRA ONLINE. It trades about 0.08 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about -0.24 per unit of risk. If you would invest 2,023 in Axfood AB on November 7, 2024 and sell it today you would earn a total of 51.00 from holding Axfood AB or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Axfood AB vs. YATRA ONLINE DL 0001
Performance |
| Timeline |
| Axfood AB |
| YATRA ONLINE DL |
Axfood AB and YATRA ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axfood AB and YATRA ONLINE
The main advantage of trading using opposite Axfood AB and YATRA ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB 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.| Axfood AB vs. CarsalesCom | Axfood AB vs. ALERION CLEANPOWER | Axfood AB vs. Tradeweb Markets | Axfood AB vs. SIDETRADE EO 1 |
| YATRA ONLINE vs. ScanSource | YATRA ONLINE vs. Ultra Clean Holdings | YATRA ONLINE vs. Check Point Software | YATRA ONLINE vs. MagnaChip Semiconductor Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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