Correlation Between Yatra Online and Hilton Worldwide

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

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

Diversification Opportunities for Yatra Online and Hilton Worldwide

-0.62

Correlation Coefficient

Yatra Online  Hilton Worldwide

Excellent diversification

The 3 months correlation between Yatra and Hilton is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide 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 are associated (or correlated) with Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of Yatra Online i.e., Yatra Online and Hilton Worldwide go up and down completely randomly.

Pair Corralation between Yatra Online and Hilton Worldwide

Given the investment horizon of 90 days Yatra Online is expected to under-perform the Hilton Worldwide. In addition to that, Yatra Online is 2.86 times more volatile than Hilton Worldwide Holdings. It trades about -0.01 of its total potential returns per unit of risk. Hilton Worldwide Holdings is currently generating about 0.13 per unit of volatility. If you would invest  20,552  in Hilton Worldwide Holdings on September 13, 2024 and sell it today you would earn a total of  5,038  from holding Hilton Worldwide Holdings or generate 24.51% return on investment over 90 days.

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

Yatra Online  vs.  Hilton Worldwide Holdings

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Hilton Worldwide Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hilton Worldwide Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Hilton Worldwide unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Yatra Online and Hilton Worldwide

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

The idea behind Yatra Online and Hilton Worldwide 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.