Correlation Between Yatra Online and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Hyatt 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 Hyatt 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 Hyatt Hotels, you can compare the effects of market volatilities on Yatra Online and Hyatt 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 Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Hyatt Hotels.
Diversification Opportunities for Yatra Online and Hyatt Hotels
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yatra and Hyatt is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels 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 Hyatt Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyatt Hotels has no effect on the direction of Yatra Online i.e., Yatra Online and Hyatt Hotels go up and down completely randomly.
Pair Corralation between Yatra Online and Hyatt Hotels
Given the investment horizon of 90 days Yatra Online is expected to generate 1.38 times more return on investment than Hyatt Hotels. However, Yatra Online is 1.38 times more volatile than Hyatt Hotels. It trades about 0.06 of its potential returns per unit of risk. Hyatt Hotels is currently generating about 0.05 per unit of risk. If you would invest 140.00 in Yatra Online on September 14, 2024 and sell it today you would earn a total of 3.00 from holding Yatra Online or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatra Online vs. Hyatt Hotels
Performance |
| Timeline |
| Yatra Online |
| Hyatt Hotels |
Yatra Online and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and Hyatt Hotels
The main advantage of trading using opposite Yatra Online and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Hyatt 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 Hyatt Hotels will offset losses from the drop in Hyatt 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 |
| Hyatt Hotels vs. Yatra Online | Hyatt Hotels vs. Despegar Corp | Hyatt Hotels vs. Mondee Holdings | Hyatt Hotels vs. MakeMyTrip 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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