Correlation Between Mondee Holdings and Wendys
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Wendys 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 Wendys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and The Wendys Co, you can compare the effects of market volatilities on Mondee Holdings and Wendys 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 Wendys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Wendys.
Diversification Opportunities for Mondee Holdings and Wendys
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mondee and Wendys is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and The Wendys Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Wendys 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 Wendys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Wendys has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Wendys go up and down completely randomly.
Pair Corralation between Mondee Holdings and Wendys
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Wendys. In addition to that, Mondee Holdings is 3.06 times more volatile than The Wendys Co. It trades about -0.14 of its total potential returns per unit of risk. The Wendys Co is currently generating about 0.08 per unit of volatility. If you would invest 1,669 in The Wendys Co on August 24, 2024 and sell it today you would earn a total of 142.00 from holding The Wendys Co or generate 8.51% 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. The Wendys Co
Performance |
| Timeline |
| Mondee Holdings |
| The Wendys |
Mondee Holdings and Wendys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Wendys
The main advantage of trading using opposite Mondee Holdings and Wendys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Wendys 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 Wendys will offset losses from the drop in Wendys' long position.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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