Correlation Between Crimson Wine and Mondee Holdings
Can any of the company-specific risk be diversified away by investing in both Crimson Wine and Mondee Holdings 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 Crimson Wine and Mondee Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crimson Wine and Mondee Holdings, you can compare the effects of market volatilities on Crimson Wine and Mondee Holdings 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 Crimson Wine with a short position of Mondee Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crimson Wine and Mondee Holdings.
Diversification Opportunities for Crimson Wine and Mondee Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Crimson and Mondee is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Crimson Wine and Mondee Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondee Holdings and Crimson Wine 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 Crimson Wine are associated (or correlated) with Mondee Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondee Holdings has no effect on the direction of Crimson Wine i.e., Crimson Wine and Mondee Holdings go up and down completely randomly.
Pair Corralation between Crimson Wine and Mondee Holdings
Given the investment horizon of 90 days Crimson Wine is expected to generate 0.31 times more return on investment than Mondee Holdings. However, Crimson Wine is 3.22 times less risky than Mondee Holdings. It trades about 0.02 of its potential returns per unit of risk. Mondee Holdings is currently generating about -0.06 per unit of risk. If you would invest 593.00 in Crimson Wine on September 2, 2024 and sell it today you would earn a total of 67.00 from holding Crimson Wine or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crimson Wine vs. Mondee Holdings
Performance |
| Timeline |
| Crimson Wine |
| Mondee Holdings |
Crimson Wine and Mondee Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crimson Wine and Mondee Holdings
The main advantage of trading using opposite Crimson Wine and Mondee Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crimson Wine position performs unexpectedly, Mondee Holdings 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 Mondee Holdings will offset losses from the drop in Mondee Holdings' long position.| Crimson Wine vs. Signet International Holdings | Crimson Wine vs. National Beverage Corp | Crimson Wine vs. PT Astra International | Crimson Wine vs. Vita Coco |
| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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