Correlation Between GreenTree Hospitality and Yatra Online
Can any of the company-specific risk be diversified away by investing in both GreenTree Hospitality 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 GreenTree Hospitality and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenTree Hospitality Group and Yatra Online, you can compare the effects of market volatilities on GreenTree Hospitality 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 GreenTree Hospitality with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTree Hospitality and Yatra Online.
Diversification Opportunities for GreenTree Hospitality and Yatra Online
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenTree and Yatra is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GreenTree Hospitality Group and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and GreenTree Hospitality 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 GreenTree Hospitality Group 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 GreenTree Hospitality i.e., GreenTree Hospitality and Yatra Online go up and down completely randomly.
Pair Corralation between GreenTree Hospitality and Yatra Online
Considering the 90-day investment horizon GreenTree Hospitality Group is expected to generate 1.07 times more return on investment than Yatra Online. However, GreenTree Hospitality is 1.07 times more volatile than Yatra Online. It trades about 0.09 of its potential returns per unit of risk. Yatra Online is currently generating about -0.25 per unit of risk. If you would invest 250.00 in GreenTree Hospitality Group on November 30, 2024 and sell it today you would earn a total of 21.00 from holding GreenTree Hospitality Group or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTree Hospitality Group vs. Yatra Online
Performance |
| Timeline |
| GreenTree Hospitality |
| Yatra Online |
GreenTree Hospitality and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTree Hospitality and Yatra Online
The main advantage of trading using opposite GreenTree Hospitality and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTree Hospitality 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.| GreenTree Hospitality vs. InterContinental Hotels Group | GreenTree Hospitality vs. Atour Lifestyle Holdings | GreenTree Hospitality vs. Huazhu Group | GreenTree Hospitality vs. Hyatt Hotels |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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