Correlation Between YATRA ONLINE and Fiserv

Can any of the company-specific risk be diversified away by investing in both YATRA ONLINE and Fiserv 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 Fiserv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YATRA ONLINE DL 0001 and Fiserv Inc, you can compare the effects of market volatilities on YATRA ONLINE and Fiserv 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 Fiserv. Check out your portfolio center. Please also check ongoing floating volatility patterns of YATRA ONLINE and Fiserv.

Diversification Opportunities for YATRA ONLINE and Fiserv

-0.6

Correlation Coefficient

YATRA ONLINE  Fiserv

Excellent diversification

The 3 months correlation between YATRA and Fiserv is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding YATRA ONLINE DL 0001 and Fiserv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv Inc 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 DL 0001 are associated (or correlated) with Fiserv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv Inc has no effect on the direction of YATRA ONLINE i.e., YATRA ONLINE and Fiserv go up and down completely randomly.

Pair Corralation between YATRA ONLINE and Fiserv

Assuming the 90 days horizon YATRA ONLINE is expected to generate 7.35 times less return on investment than Fiserv. In addition to that, YATRA ONLINE is 1.49 times more volatile than Fiserv Inc. It trades about 0.02 of its total potential returns per unit of risk. Fiserv Inc is currently generating about 0.19 per unit of volatility. If you would invest  15,914  in Fiserv Inc on September 20, 2024 and sell it today you would earn a total of  3,786  from holding Fiserv Inc or generate 23.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

YATRA ONLINE DL 0001  vs.  Fiserv Inc

YATRA ONLINE DL

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YATRA ONLINE DL 0001 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, YATRA ONLINE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fiserv Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiserv Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fiserv reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YATRA ONLINE and Fiserv

The main advantage of trading using opposite YATRA ONLINE and Fiserv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YATRA ONLINE position performs unexpectedly, Fiserv 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 Fiserv will offset losses from the drop in Fiserv's long position.

The idea behind YATRA ONLINE DL 0001 and Fiserv Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.