Correlation Between YATRA ONLINE and China International

Can any of the company-specific risk be diversified away by investing in both YATRA ONLINE and China 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 China International 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 China International Marine, you can compare the effects of market volatilities on YATRA ONLINE and China 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of YATRA ONLINE and China International.

Diversification Opportunities for YATRA ONLINE and China International

-0.16

Correlation Coefficient

YATRA ONLINE  China International

Good diversification

The 3 months correlation between YATRA and China is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding YATRA ONLINE DL 0001 and China International Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China 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 DL 0001 are associated (or correlated) with China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of YATRA ONLINE i.e., YATRA ONLINE and China International go up and down completely randomly.

Pair Corralation between YATRA ONLINE and China International

Assuming the 90 days horizon YATRA ONLINE DL 0001 is expected to under-perform the China International. In addition to that, YATRA ONLINE is 1.37 times more volatile than China International Marine. It trades about -0.12 of its total potential returns per unit of risk. China International Marine is currently generating about -0.02 per unit of volatility. If you would invest  63.00  in China International Marine on September 29, 2024 and sell it today you would lose (1.00) from holding China International Marine or give up 1.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

YATRA ONLINE DL 0001  vs.  China International Marine

YATRA ONLINE DL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YATRA ONLINE DL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

China International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China International Marine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with YATRA ONLINE and China International

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

The idea behind YATRA ONLINE DL 0001 and China International Marine 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.