Correlation Between Mondee Holdings and Aditxt

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Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Aditxt 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 Mondee Holdings and Aditxt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Aditxt Inc, you can compare the effects of market volatilities on Mondee Holdings and Aditxt 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 Mondee Holdings with a short position of Aditxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Aditxt.

Diversification Opportunities for Mondee Holdings and Aditxt

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Mondee and Aditxt is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Aditxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditxt Inc and Mondee 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 Mondee Holdings are associated (or correlated) with Aditxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditxt Inc has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Aditxt go up and down completely randomly.

Pair Corralation between Mondee Holdings and Aditxt

Given the investment horizon of 90 days Mondee Holdings is expected to generate 0.79 times more return on investment than Aditxt. However, Mondee Holdings is 1.26 times less risky than Aditxt. It trades about -0.02 of its potential returns per unit of risk. Aditxt Inc is currently generating about -0.18 per unit of risk. If you would invest  230.00  in Mondee Holdings on January 19, 2024 and sell it today you would lose (10.00) from holding Mondee Holdings or give up 4.35% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mondee Holdings  vs.  Aditxt Inc

 Performance 
       Timeline  
Mondee Holdings 

Risk-Adjusted Performance

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Over the last 90 days Mondee Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Mondee Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Aditxt Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aditxt Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Mondee Holdings and Aditxt Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mondee Holdings and Aditxt

The main advantage of trading using opposite Mondee Holdings and Aditxt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Aditxt 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 Aditxt will offset losses from the drop in Aditxt's long position.
The idea behind Mondee Holdings and Aditxt Inc 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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