Correlation Between Yatra Online and Marriott International
Can any of the company-specific risk be diversified away by investing in both Yatra Online and Marriott International 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 Marriott International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online and Marriott International, you can compare the effects of market volatilities on Yatra Online and Marriott International 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 Marriott International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and Marriott International.
Diversification Opportunities for Yatra Online and Marriott International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yatra and Marriott is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International 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 Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of Yatra Online i.e., Yatra Online and Marriott International go up and down completely randomly.
Pair Corralation between Yatra Online and Marriott International
Given the investment horizon of 90 days Yatra Online is expected to generate 14.46 times less return on investment than Marriott International. In addition to that, Yatra Online is 2.51 times more volatile than Marriott International. It trades about 0.0 of its total potential returns per unit of risk. Marriott International is currently generating about 0.09 per unit of volatility. If you would invest 21,921 in Marriott International on September 14, 2024 and sell it today you would earn a total of 6,784 from holding Marriott International or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatra Online vs. Marriott International
Performance |
| Timeline |
| Yatra Online |
| Marriott International |
Yatra Online and Marriott International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and Marriott International
The main advantage of trading using opposite Yatra Online and Marriott International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, Marriott International 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 Marriott International will offset losses from the drop in Marriott International's long position.| Yatra Online vs. Despegar Corp | Yatra Online vs. Lindblad Expeditions Holdings | Yatra Online vs. Mondee Holdings | Yatra Online vs. Trip Group Ltd |
| Marriott International vs. Yatra Online | Marriott International vs. Mondee Holdings | Marriott International vs. MakeMyTrip Limited | Marriott International vs. Tuniu Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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