Correlation Between Yatra Online and Bodhi Tree
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Bodhi Tree 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 Yatra Online and Bodhi Tree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online Limited and Bodhi Tree Multimedia, you can compare the effects of market volatilities on Yatra Online and Bodhi Tree 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 Yatra Online with a short position of Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Bodhi Tree.
Diversification Opportunities for Yatra Online and Bodhi Tree
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yatra and Bodhi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online Limited and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia and Yatra Online 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 Yatra Online Limited are associated (or correlated) with Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of Yatra Online i.e., Yatra Online and Bodhi Tree go up and down completely randomly.
Pair Corralation between Yatra Online and Bodhi Tree
Assuming the 90 days trading horizon Yatra Online Limited is expected to under-perform the Bodhi Tree. But the stock apears to be less risky and, when comparing its historical volatility, Yatra Online Limited is 1.62 times less risky than Bodhi Tree. The stock trades about -0.23 of its potential returns per unit of risk. The Bodhi Tree Multimedia is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,199 in Bodhi Tree Multimedia on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Bodhi Tree Multimedia or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatra Online Limited vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| Yatra Online Limited |
| Bodhi Tree Multimedia |
Yatra Online and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and Bodhi Tree
The main advantage of trading using opposite Yatra Online and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| Yatra Online vs. Reliance Industries Limited | Yatra Online vs. HDFC Bank Limited | Yatra Online vs. Kingfa Science Technology | Yatra Online vs. Rico Auto Industries |
| Bodhi Tree vs. Cantabil Retail India | Bodhi Tree vs. Jaypee Infratech Limited | Bodhi Tree vs. Styrenix Performance Materials | Bodhi Tree vs. Future Retail Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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