Correlation Between Mondee Holdings and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and NYSE Composite 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 NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and NYSE Composite, you can compare the effects of market volatilities on Mondee Holdings and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and NYSE Composite.
Diversification Opportunities for Mondee Holdings and NYSE Composite
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mondee and NYSE is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and NYSE Composite go up and down completely randomly.
Pair Corralation between Mondee Holdings and NYSE Composite
Given the investment horizon of 90 days Mondee Holdings is expected to generate 2.64 times less return on investment than NYSE Composite. In addition to that, Mondee Holdings is 8.59 times more volatile than NYSE Composite. It trades about 0.01 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.29 per unit of volatility. If you would invest 1,672,955 in NYSE Composite on December 20, 2023 and sell it today you would earn a total of 115,276 from holding NYSE Composite or generate 6.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mondee Holdings vs. NYSE Composite
Performance |
Timeline |
Mondee Holdings and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Mondee Holdings
Pair trading matchups for Mondee Holdings
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Mondee Holdings and NYSE Composite
The main advantage of trading using opposite Mondee Holdings and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Mondee Holdings vs. BBB Foods | Mondee Holdings vs. Universal Stainless Alloy | Mondee Holdings vs. Lizhan Environmental | Mondee Holdings vs. Quanex Building Products |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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