Correlation Between Yatra Online and TUI AG
Can any of the company-specific risk be diversified away by investing in both Yatra Online and TUI AG 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 TUI AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yatra Online and TUI AG, you can compare the effects of market volatilities on Yatra Online and TUI AG 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 TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatra Online and TUI AG.
Diversification Opportunities for Yatra Online and TUI AG
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yatra and TUI is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG 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 TUI AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUI AG has no effect on the direction of Yatra Online i.e., Yatra Online and TUI AG go up and down completely randomly.
Pair Corralation between Yatra Online and TUI AG
Given the investment horizon of 90 days Yatra Online is expected to generate 1.01 times more return on investment than TUI AG. However, Yatra Online is 1.01 times more volatile than TUI AG. It trades about 0.05 of its potential returns per unit of risk. TUI AG is currently generating about -0.05 per unit of risk. If you would invest 137.00 in Yatra Online on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Yatra Online or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yatra Online vs. TUI AG
Performance |
| Timeline |
| Yatra Online |
| TUI AG |
Yatra Online and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yatra Online and TUI AG
The main advantage of trading using opposite Yatra Online and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yatra Online position performs unexpectedly, TUI AG 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 TUI AG will offset losses from the drop in TUI AG'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 |
| TUI AG vs. Expedia Group | TUI AG vs. Trip Group Ltd | TUI AG vs. Booking Holdings | TUI AG vs. Despegar 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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