Correlation Between Inspirato and Yatra Online

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

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

Diversification Opportunities for Inspirato and Yatra Online

0.3

Correlation Coefficient

Inspirato  Yatra Online

Weak diversification

The 3 months correlation between Inspirato and Yatra is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Inspirato and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Inspirato 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 Inspirato 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 Inspirato i.e., Inspirato and Yatra Online go up and down completely randomly.

Pair Corralation between Inspirato and Yatra Online

Given the investment horizon of 90 days Inspirato is expected to under-perform the Yatra Online. In addition to that, Inspirato is 1.59 times more volatile than Yatra Online. It trades about -0.11 of its total potential returns per unit of risk. Yatra Online is currently generating about -0.03 per unit of volatility. If you would invest  218.00  in Yatra Online on February 28, 2024 and sell it today you would lose (59.00) from holding Yatra Online or give up 27.06% of portfolio value over 90 days.

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

Inspirato  vs.  Yatra Online

Inspirato

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inspirato 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 very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Yatra Online

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Yatra Online has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Yatra Online is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Inspirato and Yatra Online

The main advantage of trading using opposite Inspirato and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspirato 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 Inspirato 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.