Correlation Between Yatra Online and Praj Industries

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Praj Industries 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 Praj Industries 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 Praj Industries Limited, you can compare the effects of market volatilities on Yatra Online and Praj Industries 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 Praj Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Praj Industries.

Diversification Opportunities for Yatra Online and Praj Industries

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Yatra and Praj is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online Limited and Praj Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praj Industries 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 Praj Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praj Industries has no effect on the direction of Yatra Online i.e., Yatra Online and Praj Industries go up and down completely randomly.

Pair Corralation between Yatra Online and Praj Industries

Assuming the 90 days trading horizon Yatra Online Limited is expected to under-perform the Praj Industries. But the stock apears to be less risky and, when comparing its historical volatility, Yatra Online Limited is 1.46 times less risky than Praj Industries. The stock trades about -0.23 of its potential returns per unit of risk. The Praj Industries Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  75,585  in Praj Industries Limited on September 3, 2024 and sell it today you would earn a total of  6,790  from holding Praj Industries Limited or generate 8.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Yatra Online Limited  vs.  Praj Industries Limited

 Performance 
       Timeline  
Yatra Online Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Yatra Online Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Praj Industries 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Praj Industries Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Praj Industries may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Yatra Online and Praj Industries Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yatra Online and Praj Industries

The main advantage of trading using opposite Yatra Online and Praj Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Praj Industries 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 Praj Industries will offset losses from the drop in Praj Industries' long position.
Yatra Online vs. Network18 Media Investments
Yatra Online vs. Eros International Media
Yatra Online vs. Archean Chemical Industries
Yatra Online vs. Silly Monks Entertainment
The idea behind Yatra Online Limited and Praj Industries Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Praj Industries vs. Tata Consultancy Services
Praj Industries vs. Reliance Industries Limited
Praj Industries vs. Wipro Limited
Praj Industries vs. Shipping
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY