Correlation Between Mondee Holdings and Bt Brands
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Bt Brands 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 Bt Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Bt Brands, you can compare the effects of market volatilities on Mondee Holdings and Bt Brands 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 Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Bt Brands.
Diversification Opportunities for Mondee Holdings and Bt Brands
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mondee and BTBD is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt Brands 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 Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Bt Brands go up and down completely randomly.
Pair Corralation between Mondee Holdings and Bt Brands
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Bt Brands. In addition to that, Mondee Holdings is 1.7 times more volatile than Bt Brands. It trades about -0.12 of its total potential returns per unit of risk. Bt Brands is currently generating about -0.07 per unit of volatility. If you would invest 175.00 in Bt Brands on August 23, 2024 and sell it today you would lose (14.00) from holding Bt Brands or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondee Holdings vs. Bt Brands
Performance |
| Timeline |
| Mondee Holdings |
| Bt Brands |
Mondee Holdings and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Bt Brands
The main advantage of trading using opposite Mondee Holdings and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Bt Brands 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 Bt Brands will offset losses from the drop in Bt Brands' long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| Bt Brands vs. Bloomin Brands | Bt Brands vs. BJs Restaurants | Bt Brands vs. Darden Restaurants | Bt Brands vs. Wingstop |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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