Correlation Between Mondee Holdings and Inspirato
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Inspirato 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 Inspirato into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Inspirato, you can compare the effects of market volatilities on Mondee Holdings and Inspirato 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 Inspirato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Inspirato.
Diversification Opportunities for Mondee Holdings and Inspirato
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mondee and Inspirato is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Inspirato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspirato 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 Inspirato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspirato has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Inspirato go up and down completely randomly.
Pair Corralation between Mondee Holdings and Inspirato
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Inspirato. In addition to that, Mondee Holdings is 1.22 times more volatile than Inspirato. It trades about -0.15 of its total potential returns per unit of risk. Inspirato is currently generating about 0.04 per unit of volatility. If you would invest 438.00 in Inspirato on October 25, 2024 and sell it today you would earn a total of 134.00 from holding Inspirato or generate 30.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.58% |
| Values | Daily Returns |
Mondee Holdings vs. Inspirato
Performance |
| Timeline |
| Mondee Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inspirato |
Mondee Holdings and Inspirato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Inspirato
The main advantage of trading using opposite Mondee Holdings and Inspirato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Inspirato 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 Inspirato will offset losses from the drop in Inspirato's long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| Inspirato vs. Trip Group Ltd | Inspirato vs. Yatra Online | Inspirato vs. Travel Leisure Co | Inspirato 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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