Correlation Between Mondee Holdings and Carnival
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Carnival 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 Carnival into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Carnival, you can compare the effects of market volatilities on Mondee Holdings and Carnival 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 Carnival. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Carnival.
Diversification Opportunities for Mondee Holdings and Carnival
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mondee and Carnival is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Carnival in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnival 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 Carnival. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnival has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Carnival go up and down completely randomly.
Pair Corralation between Mondee Holdings and Carnival
Given the investment horizon of 90 days Mondee Holdings is expected to generate 1.94 times more return on investment than Carnival. However, Mondee Holdings is 1.94 times more volatile than Carnival. It trades about -0.02 of its potential returns per unit of risk. Carnival is currently generating about -0.05 per unit of risk. If you would invest 233.00 in Mondee Holdings on January 31, 2024 and sell it today you would lose (14.00) from holding Mondee Holdings or give up 6.01% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mondee Holdings vs. Carnival
Performance |
Timeline |
Mondee Holdings |
Carnival |
Mondee Holdings and Carnival Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mondee Holdings and Carnival
The main advantage of trading using opposite Mondee Holdings and Carnival positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Carnival 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 Carnival will offset losses from the drop in Carnival's long position.Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
Carnival vs. Yatra Online | Carnival vs. Despegar Corp | Carnival vs. Mondee Holdings | Carnival vs. MakeMyTrip Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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