Correlation Between Yatra Online and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Choice Hotels 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 Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online and Choice Hotels International, you can compare the effects of market volatilities on Yatra Online and Choice Hotels 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 Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Choice Hotels.
Diversification Opportunities for Yatra Online and Choice Hotels
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yatra and Choice is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern 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 are associated (or correlated) with Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Yatra Online i.e., Yatra Online and Choice Hotels go up and down completely randomly.
Pair Corralation between Yatra Online and Choice Hotels
Given the investment horizon of 90 days Yatra Online is expected to generate 2.54 times less return on investment than Choice Hotels. In addition to that, Yatra Online is 2.47 times more volatile than Choice Hotels International. It trades about 0.05 of its total potential returns per unit of risk. Choice Hotels International is currently generating about 0.31 per unit of volatility. If you would invest 14,030 in Choice Hotels International on August 31, 2024 and sell it today you would earn a total of 1,094 from holding Choice Hotels International or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yatra Online vs. Choice Hotels International
Performance |
| Timeline |
| Yatra Online |
| Choice Hotels Intern |
Yatra Online and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and Choice Hotels
The main advantage of trading using opposite Yatra Online and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Choice Hotels 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| Yatra Online vs. Despegar Corp | Yatra Online vs. Lindblad Expeditions Holdings | Yatra Online vs. Mondee Holdings | Yatra Online vs. Trip Group Ltd |
| Choice Hotels vs. Hyatt Hotels | Choice Hotels vs. Hilton Worldwide Holdings | Choice Hotels vs. InterContinental Hotels Group | Choice Hotels vs. Marriott International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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