Correlation Between Sabre and Yatra Online

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

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

Diversification Opportunities for Sabre and Yatra Online

0.0

Correlation Coefficient

Sabre  Yatra Online

Pay attention - limited upside

The 3 months correlation between Sabre and Yatra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Sabre 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 Sabre 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 has no effect on the direction of Sabre i.e., Sabre and Yatra Online go up and down completely randomly.

Pair Corralation between Sabre and Yatra Online

Assuming the 90 days horizon Sabre is expected to under-perform the Yatra Online. In addition to that, Sabre is 1.24 times more volatile than Yatra Online. It trades about -0.08 of its total potential returns per unit of risk. Yatra Online is currently generating about -0.02 per unit of volatility. If you would invest  232.00  in Yatra Online on October 3, 2024 and sell it today you would lose (106.00) from holding Yatra Online or give up 45.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	23.42%
Values	Daily Returns

Sabre  vs.  Yatra Online

Sabre

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Sabre has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sabre is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Yatra Online

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yatra Online has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sabre and Yatra Online

The main advantage of trading using opposite Sabre and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre 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 Sabre and Yatra Online 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.