Correlation Between Yatra Online and Inspirato
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Inspirato 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 Inspirato into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online and Inspirato, you can compare the effects of market volatilities on Yatra Online and Inspirato 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 Inspirato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Inspirato.
Diversification Opportunities for Yatra Online and Inspirato
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yatra and Inspirato is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Inspirato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspirato 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 Inspirato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspirato has no effect on the direction of Yatra Online i.e., Yatra Online and Inspirato go up and down completely randomly.
Pair Corralation between Yatra Online and Inspirato
Given the investment horizon of 90 days Yatra Online is expected to under-perform the Inspirato. But the stock apears to be less risky and, when comparing its historical volatility, Yatra Online is 2.66 times less risky than Inspirato. The stock trades about -0.1 of its potential returns per unit of risk. The Inspirato is currently generating about 0.75 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Inspirato on October 24, 2024 and sell it today you would earn a total of 340.00 from holding Inspirato or generate 102.72% 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. Inspirato
Performance |
| Timeline |
| Yatra Online |
| Inspirato |
Yatra Online and Inspirato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and Inspirato
The main advantage of trading using opposite Yatra Online and Inspirato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Inspirato 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 Inspirato will offset losses from the drop in Inspirato's long position.| Yatra Online vs. Despegar Corp | Yatra Online vs. Lindblad Expeditions Holdings | Yatra Online vs. Trip Group Ltd | Yatra Online vs. Travel Leisure Co |
| Inspirato vs. Trip Group Ltd | Inspirato vs. Yatra Online | Inspirato vs. Travel Leisure Co | Inspirato 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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