Correlation Between Hilton Worldwide and Yatra Online
Can any of the company-specific risk be diversified away by investing in both Hilton Worldwide 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 Hilton Worldwide and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Worldwide Holdings and Yatra Online, you can compare the effects of market volatilities on Hilton Worldwide 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 Hilton Worldwide with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Worldwide and Yatra Online.
Diversification Opportunities for Hilton Worldwide and Yatra Online
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hilton and Yatra is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Hilton Worldwide 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 Hilton Worldwide Holdings 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 Hilton Worldwide i.e., Hilton Worldwide and Yatra Online go up and down completely randomly.
Pair Corralation between Hilton Worldwide and Yatra Online
Considering the 90-day investment horizon Hilton Worldwide Holdings is expected to generate 0.38 times more return on investment than Yatra Online. However, Hilton Worldwide Holdings is 2.63 times less risky than Yatra Online. It trades about 0.1 of its potential returns per unit of risk. Yatra Online is currently generating about -0.01 per unit of risk. If you would invest 13,664 in Hilton Worldwide Holdings on August 27, 2024 and sell it today you would earn a total of 11,636 from holding Hilton Worldwide Holdings or generate 85.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Worldwide Holdings vs. Yatra Online
Performance |
| Timeline |
| Hilton Worldwide Holdings |
| Yatra Online |
Hilton Worldwide and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Worldwide and Yatra Online
The main advantage of trading using opposite Hilton Worldwide and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide 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.| Hilton Worldwide vs. Hyatt Hotels | Hilton Worldwide vs. Wyndham Hotels Resorts | Hilton Worldwide vs. Choice Hotels International | Hilton Worldwide vs. InterContinental Hotels Group |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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