Correlation Between Mondee Holdings and Crimson Wine
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Crimson Wine 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 Crimson Wine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Crimson Wine, you can compare the effects of market volatilities on Mondee Holdings and Crimson Wine 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 Crimson Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Crimson Wine.
Diversification Opportunities for Mondee Holdings and Crimson Wine
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mondee and Crimson is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Crimson Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crimson Wine 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 Crimson Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crimson Wine has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Crimson Wine go up and down completely randomly.
Pair Corralation between Mondee Holdings and Crimson Wine
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Crimson Wine. In addition to that, Mondee Holdings is 3.22 times more volatile than Crimson Wine. It trades about -0.06 of its total potential returns per unit of risk. Crimson Wine is currently generating about 0.02 per unit of volatility. 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 |
Mondee Holdings vs. Crimson Wine
Performance |
| Timeline |
| Mondee Holdings |
| Crimson Wine |
Mondee Holdings and Crimson Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Crimson Wine
The main advantage of trading using opposite Mondee Holdings and Crimson Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Crimson Wine 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 Crimson Wine will offset losses from the drop in Crimson Wine's long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| Crimson Wine vs. Signet International Holdings | Crimson Wine vs. National Beverage Corp | Crimson Wine vs. PT Astra International | Crimson Wine vs. Vita Coco |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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