Correlation Between Everi Holdings and Yatra Online

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

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

Diversification Opportunities for Everi Holdings and Yatra Online

0.7

Correlation Coefficient

Everi Holdings  Yatra Online

Poor diversification

The 3 months correlation between Everi and Yatra is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Everi Holdings 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 Everi Holdings 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 Everi Holdings i.e., Everi Holdings and Yatra Online go up and down completely randomly.

Pair Corralation between Everi Holdings and Yatra Online

Given the investment horizon of 90 days Everi Holdings is expected to under-perform the Yatra Online. But the stock apears to be less risky and, when comparing its historical volatility, Everi Holdings is 2.33 times less risky than Yatra Online. The stock trades about -0.55 of its potential returns per unit of risk. The Yatra Online is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  148.00  in Yatra Online on February 11, 2024 and sell it today you would lose (2.00) from holding Yatra Online or give up 1.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Everi Holdings  vs.  Yatra Online

Everi Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everi Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 unsteady 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.

Pair Trading with Everi Holdings and Yatra Online

The main advantage of trading using opposite Everi Holdings and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings 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 Everi Holdings 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.