Correlation Between Trip Group and Yatra Online
Can any of the company-specific risk be diversified away by investing in both Trip Group 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 Trip Group and Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trip Group Ltd and Yatra Online, you can compare the effects of market volatilities on Trip Group 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 Trip Group with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and Yatra Online.
Diversification Opportunities for Trip Group and Yatra Online
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trip and Yatra is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Trip Group Ltd and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Trip Group 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 Trip Group Ltd 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 Trip Group i.e., Trip Group and Yatra Online go up and down completely randomly.
Pair Corralation between Trip Group and Yatra Online
Given the investment horizon of 90 days Trip Group Ltd is expected to under-perform the Yatra Online. But the stock apears to be less risky and, when comparing its historical volatility, Trip Group Ltd is 1.09 times less risky than Yatra Online. The stock trades about 0.0 of its potential returns per unit of risk. The Yatra Online is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Yatra Online on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Yatra Online or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trip Group Ltd vs. Yatra Online
Performance |
| Timeline |
| Trip Group |
| Yatra Online |
Trip Group and Yatra Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trip Group and Yatra Online
The main advantage of trading using opposite Trip Group and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trip Group 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.| Trip Group vs. Expedia Group | Trip Group vs. Booking Holdings | Trip Group vs. Despegar Corp | Trip Group vs. Travel Leisure Co |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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