Correlation Between Mondee Holdings and Smart Share
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Smart Share 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 Smart Share into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Smart Share Global, you can compare the effects of market volatilities on Mondee Holdings and Smart Share 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 Smart Share. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Smart Share.
Diversification Opportunities for Mondee Holdings and Smart Share
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mondee and Smart is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Smart Share Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Share Global 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 Smart Share. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Share Global has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Smart Share go up and down completely randomly.
Pair Corralation between Mondee Holdings and Smart Share
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Smart Share. In addition to that, Mondee Holdings is 1.12 times more volatile than Smart Share Global. It trades about -0.14 of its total potential returns per unit of risk. Smart Share Global is currently generating about 0.04 per unit of volatility. If you would invest 69.00 in Smart Share Global on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Smart Share Global or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondee Holdings vs. Smart Share Global
Performance |
| Timeline |
| Mondee Holdings |
| Smart Share Global |
Mondee Holdings and Smart Share Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Smart Share
The main advantage of trading using opposite Mondee Holdings and Smart Share positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Smart Share 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 Smart Share will offset losses from the drop in Smart Share's long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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