Correlation Between Gujarat Lease and Yatra Online

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

By analyzing existing cross correlation between Gujarat Lease Financing and Yatra Online Limited, you can compare the effects of market volatilities on Gujarat Lease 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 Gujarat Lease with a short position of Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Lease and Yatra Online.

Diversification Opportunities for Gujarat Lease and Yatra Online

0.81

Correlation Coefficient

Gujarat Lease  Yatra Online

Very poor diversification

The 3 months correlation between Gujarat and Yatra is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Lease Financing and Yatra Online Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online Limited and Gujarat Lease 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 Gujarat Lease Financing 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 Limited has no effect on the direction of Gujarat Lease i.e., Gujarat Lease and Yatra Online go up and down completely randomly.

Pair Corralation between Gujarat Lease and Yatra Online

Assuming the 90 days trading horizon Gujarat Lease Financing is expected to under-perform the Yatra Online. In addition to that, Gujarat Lease is 1.16 times more volatile than Yatra Online Limited. It trades about -0.23 of its total potential returns per unit of risk. Yatra Online Limited is currently generating about -0.17 per unit of volatility. If you would invest  11,486  in Yatra Online Limited on December 26, 2024 and sell it today you would lose (3,302) from holding Yatra Online Limited or give up 28.75% of portfolio value over 90 days.

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

Gujarat Lease Financing  vs.  Yatra Online Limited

Gujarat Lease Financing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gujarat Lease Financing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Yatra Online Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yatra Online Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Gujarat Lease and Yatra Online

The main advantage of trading using opposite Gujarat Lease and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Lease 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 Gujarat Lease Financing and Yatra Online Limited 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.