Correlation Between Mondee Holdings and Alico
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Alico 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 Alico into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Alico Inc, you can compare the effects of market volatilities on Mondee Holdings and Alico 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 Alico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Alico.
Diversification Opportunities for Mondee Holdings and Alico
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mondee and Alico is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Alico Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alico 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 Alico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alico Inc has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Alico go up and down completely randomly.
Pair Corralation between Mondee Holdings and Alico
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Alico. In addition to that, Mondee Holdings is 2.84 times more volatile than Alico Inc. It trades about -0.06 of its total potential returns per unit of risk. Alico Inc is currently generating about 0.01 per unit of volatility. If you would invest 2,725 in Alico Inc on September 2, 2024 and sell it today you would lose (45.00) from holding Alico Inc or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondee Holdings vs. Alico Inc
Performance |
| Timeline |
| Mondee Holdings |
| Alico Inc |
Mondee Holdings and Alico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Alico
The main advantage of trading using opposite Mondee Holdings and Alico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Alico 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 Alico will offset losses from the drop in Alico's long position.| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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