Correlation Between Mondee Holdings and Sun Country
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Sun Country 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 Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Sun Country Airlines, you can compare the effects of market volatilities on Mondee Holdings and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Sun Country.
Diversification Opportunities for Mondee Holdings and Sun Country
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mondee and Sun is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Sun Country go up and down completely randomly.
Pair Corralation between Mondee Holdings and Sun Country
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Sun Country. In addition to that, Mondee Holdings is 1.94 times more volatile than Sun Country Airlines. It trades about -0.02 of its total potential returns per unit of risk. Sun Country Airlines is currently generating about -0.03 per unit of volatility. If you would invest 2,173 in Sun Country Airlines on February 21, 2024 and sell it today you would lose (1,133) from holding Sun Country Airlines or give up 52.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Mondee Holdings vs. Sun Country Airlines
Performance |
Timeline |
Mondee Holdings |
Sun Country Airlines |
Mondee Holdings and Sun Country Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mondee Holdings and Sun Country
The main advantage of trading using opposite Mondee Holdings and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.Mondee Holdings vs. AirbnbInc | Mondee Holdings vs. TripAdvisor | Mondee Holdings vs. Trip Group Ltd | Mondee Holdings vs. Travel Leisure Co |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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