Correlation Between Mondee Holdings and Inspired Entertainment
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Inspired Entertainment 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 Inspired Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Inspired Entertainment, you can compare the effects of market volatilities on Mondee Holdings and Inspired Entertainment 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 Inspired Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Inspired Entertainment.
Diversification Opportunities for Mondee Holdings and Inspired Entertainment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mondee and Inspired is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Inspired Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspired Entertainment 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 Inspired Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspired Entertainment has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Inspired Entertainment go up and down completely randomly.
Pair Corralation between Mondee Holdings and Inspired Entertainment
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Inspired Entertainment. In addition to that, Mondee Holdings is 4.29 times more volatile than Inspired Entertainment. It trades about -0.12 of its total potential returns per unit of risk. Inspired Entertainment is currently generating about 0.25 per unit of volatility. If you would invest 910.00 in Inspired Entertainment on August 27, 2024 and sell it today you would earn a total of 79.00 from holding Inspired Entertainment or generate 8.68% 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. Inspired Entertainment
Performance |
| Timeline |
| Mondee Holdings |
| Inspired Entertainment |
Mondee Holdings and Inspired Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Inspired Entertainment
The main advantage of trading using opposite Mondee Holdings and Inspired Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Inspired Entertainment 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 Inspired Entertainment will offset losses from the drop in Inspired Entertainment's long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| Inspired Entertainment vs. Canterbury Park Holding | Inspired Entertainment vs. Accel Entertainment | Inspired Entertainment vs. Gambling Group | Inspired Entertainment vs. PlayAGS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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