Correlation Between Mondee Holdings and Sabre
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Sabre 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 Sabre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Sabre, you can compare the effects of market volatilities on Mondee Holdings and Sabre 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 Sabre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Sabre.
Diversification Opportunities for Mondee Holdings and Sabre
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mondee and Sabre is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Sabre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre 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 Sabre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Sabre go up and down completely randomly.
Pair Corralation between Mondee Holdings and Sabre
If you would invest 5,643 in Sabre on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sabre or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mondee Holdings vs. Sabre
Performance |
| Timeline |
| Mondee Holdings |
| Sabre |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mondee Holdings and Sabre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Sabre
The main advantage of trading using opposite Mondee Holdings and Sabre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Sabre 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 Sabre will offset losses from the drop in Sabre's long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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