Correlation Between Visa and Yatra Online

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

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

Diversification Opportunities for Visa and Yatra Online

0.06

Correlation Coefficient

Visa  Yatra Online

Significant diversification

The 3 months correlation between Visa and Yatra is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online and Visa 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 Visa Class A 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 Visa i.e., Visa and Yatra Online go up and down completely randomly.

Pair Corralation between Visa and Yatra Online

Taking into account the 90-day investment horizon Visa Class A is expected to under-perform the Yatra Online. But the stock apears to be less risky and, when comparing its historical volatility, Visa Class A is 2.22 times less risky than Yatra Online. The stock trades about -0.02 of its potential returns per unit of risk. The Yatra Online is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  65.00  in Yatra Online on May 7, 2025 and sell it today you would earn a total of  26.00  from holding Yatra Online or generate 40.0% return on investment over 90 days.

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

Visa Class A  vs.  Yatra Online

Visa Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days Visa Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Visa is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Yatra Online

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yatra Online are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Yatra Online sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Visa and Yatra Online

The main advantage of trading using opposite Visa and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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 Visa Class A 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.