Correlation Between Yatra Online and Sabre

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

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

Diversification Opportunities for Yatra Online and Sabre

0.28

Correlation Coefficient

Yatra Online  Sabre

Modest diversification

The 3 months correlation between Yatra and Sabre is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and Sabre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre 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 Sabre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre has no effect on the direction of Yatra Online i.e., Yatra Online and Sabre go up and down completely randomly.

Pair Corralation between Yatra Online and Sabre

Given the investment horizon of 90 days Yatra Online is expected to generate 0.81 times more return on investment than Sabre. However, Yatra Online is 1.24 times less risky than Sabre. It trades about -0.02 of its potential returns per unit of risk. Sabre is currently generating about -0.08 per unit of risk. 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	Moves Together
Strength	Very Weak
Accuracy	23.42%
Values	Daily Returns

Yatra Online  vs.  Sabre

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 inconsistent 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.

Sabre

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Yatra Online and Sabre

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

The idea behind Yatra Online and Sabre 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.