Correlation Between Yatra Online and MakeMyTrip
Can any of the company-specific risk be diversified away by investing in both Yatra Online and MakeMyTrip 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 MakeMyTrip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online and MakeMyTrip Limited, you can compare the effects of market volatilities on Yatra Online and MakeMyTrip 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 MakeMyTrip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and MakeMyTrip.
Diversification Opportunities for Yatra Online and MakeMyTrip
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yatra and MakeMyTrip is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and MakeMyTrip Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MakeMyTrip Limited 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 MakeMyTrip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MakeMyTrip Limited has no effect on the direction of Yatra Online i.e., Yatra Online and MakeMyTrip go up and down completely randomly.
Pair Corralation between Yatra Online and MakeMyTrip
Given the investment horizon of 90 days Yatra Online is expected to under-perform the MakeMyTrip. In addition to that, Yatra Online is 1.25 times more volatile than MakeMyTrip Limited. It trades about -0.01 of its total potential returns per unit of risk. MakeMyTrip Limited is currently generating about 0.11 per unit of volatility. If you would invest 2,803 in MakeMyTrip Limited on August 24, 2024 and sell it today you would earn a total of 8,070 from holding MakeMyTrip Limited or generate 287.91% 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. MakeMyTrip Limited
Performance |
| Timeline |
| Yatra Online |
| MakeMyTrip Limited |
Yatra Online and MakeMyTrip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and MakeMyTrip
The main advantage of trading using opposite Yatra Online and MakeMyTrip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, MakeMyTrip 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 MakeMyTrip will offset losses from the drop in MakeMyTrip'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 |
| MakeMyTrip vs. Tuniu Corp | MakeMyTrip vs. Mondee Holdings | MakeMyTrip vs. Amadeus IT Group | MakeMyTrip vs. Travel Leisure Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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