Correlation Between Yatra Online and TIM Participacoes

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

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

Diversification Opportunities for Yatra Online and TIM Participacoes

0.0

Correlation Coefficient

Yatra Online  TIM Participacoes

Pay attention - limited upside

The 3 months correlation between Yatra and TIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yatra Online and TIM Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIM Participacoes 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 TIM Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIM Participacoes has no effect on the direction of Yatra Online i.e., Yatra Online and TIM Participacoes go up and down completely randomly.

Pair Corralation between Yatra Online and TIM Participacoes

Given the investment horizon of 90 days Yatra Online is expected to generate 1.54 times less return on investment than TIM Participacoes. In addition to that, Yatra Online is 2.14 times more volatile than TIM Participacoes SA. It trades about 0.04 of its total potential returns per unit of risk. TIM Participacoes SA is currently generating about 0.14 per unit of volatility. If you would invest  1,153  in TIM Participacoes SA on September 9, 2025 and sell it today you would earn a total of  1,010  from holding TIM Participacoes SA or generate 87.6% return on investment over 90 days.

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

Yatra Online  vs.  TIM Participacoes SA

Yatra Online

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Yatra Online are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Yatra Online sustained solid returns over the last few months and may actually be approaching a breakup point.

TIM Participacoes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TIM Participacoes SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, TIM Participacoes is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Yatra Online and TIM Participacoes

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

The idea behind Yatra Online and TIM Participacoes SA 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.