Correlation Between YATRA ONLINE and Crown Holdings

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

Diversification Opportunities for YATRA ONLINE and Crown Holdings

0.13

Correlation Coefficient

YATRA ONLINE  Crown Holdings

Average diversification

The 3 months correlation between YATRA and Crown is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding YATRA ONLINE DL 0001 and Crown Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Holdings 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 Crown Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Holdings has no effect on the direction of YATRA ONLINE i.e., YATRA ONLINE and Crown Holdings go up and down completely randomly.

Pair Corralation between YATRA ONLINE and Crown Holdings

Assuming the 90 days horizon YATRA ONLINE DL 0001 is expected to under-perform the Crown Holdings. In addition to that, YATRA ONLINE is 1.99 times more volatile than Crown Holdings. It trades about -0.02 of its total potential returns per unit of risk. Crown Holdings is currently generating about 0.01 per unit of volatility. If you would invest  7,655  in Crown Holdings on September 28, 2024 and sell it today you would earn a total of  275.00  from holding Crown Holdings or generate 3.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

YATRA ONLINE DL 0001  vs.  Crown Holdings

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.

Crown Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Crown Holdings 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 Crown Holdings

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

The idea behind YATRA ONLINE DL 0001 and Crown Holdings 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.