Correlation Between SUN ART and YATRA ONLINE

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

By analyzing existing cross correlation between SUN ART RETAIL and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on SUN ART and YATRA ONLINE 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 SUN ART with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN ART and YATRA ONLINE.

Diversification Opportunities for SUN ART and YATRA ONLINE

-0.47

Correlation Coefficient

SUN ART  YATRA ONLINE

Very good diversification

The 3 months correlation between SUN and YATRA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SUN ART RETAIL and YATRA ONLINE DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YATRA ONLINE DL and SUN ART 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 SUN ART RETAIL are associated (or correlated) with YATRA ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YATRA ONLINE DL has no effect on the direction of SUN ART i.e., SUN ART and YATRA ONLINE go up and down completely randomly.

Pair Corralation between SUN ART and YATRA ONLINE

Assuming the 90 days trading horizon SUN ART RETAIL is expected to generate 1.8 times more return on investment than YATRA ONLINE. However, SUN ART is 1.8 times more volatile than YATRA ONLINE DL 0001. It trades about 0.22 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about 0.06 per unit of risk. If you would invest  13.00  in SUN ART RETAIL on September 21, 2024 and sell it today you would earn a total of  18.00  from holding SUN ART RETAIL or generate 138.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.85%
Values	Daily Returns

SUN ART RETAIL  vs.  YATRA ONLINE DL 0001

SUN ART RETAIL

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SUN ART RETAIL are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile forward indicators, SUN ART exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with SUN ART and YATRA ONLINE

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

The idea behind SUN ART RETAIL and YATRA ONLINE DL 0001 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.