Correlation Between Carnival and Yatra Online
Can any of the company-specific risk be diversified away by investing in both Carnival 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 Carnival and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnival and Yatra Online, you can compare the effects of market volatilities on Carnival 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 Carnival with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnival and Yatra Online.
Diversification Opportunities for Carnival and Yatra Online
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carnival and Yatra is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Carnival and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Carnival 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 Carnival 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 Carnival i.e., Carnival and Yatra Online go up and down completely randomly.
Pair Corralation between Carnival and Yatra Online
Considering the 90-day investment horizon Carnival is expected to generate 0.8 times more return on investment than Yatra Online. However, Carnival is 1.25 times less risky than Yatra Online. It trades about 0.3 of its potential returns per unit of risk. Yatra Online is currently generating about 0.1 per unit of risk. If you would invest 2,192 in Carnival on August 27, 2024 and sell it today you would earn a total of 298.00 from holding Carnival or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnival vs. Yatra Online
Performance |
| Timeline |
| Carnival |
| Yatra Online |
Carnival and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnival and Yatra Online
The main advantage of trading using opposite Carnival and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnival 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.| Carnival vs. Yatra Online | Carnival vs. Mondee Holdings | Carnival vs. Tuniu Corp | Carnival vs. TripAdvisor |
| Yatra Online vs. Despegar Corp | Yatra Online vs. Lindblad Expeditions Holdings | Yatra Online vs. Mondee Holdings | Yatra Online vs. Trip Group Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |