Correlation Between Sabre and Mondee Holdings
Can any of the company-specific risk be diversified away by investing in both Sabre and Mondee Holdings 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 Sabre and Mondee Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre and Mondee Holdings, you can compare the effects of market volatilities on Sabre and Mondee Holdings 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 Sabre with a short position of Mondee Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre and Mondee Holdings.
Diversification Opportunities for Sabre and Mondee Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Mondee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre and Mondee Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondee Holdings and Sabre 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 Sabre are associated (or correlated) with Mondee Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondee Holdings has no effect on the direction of Sabre i.e., Sabre and Mondee Holdings go up and down completely randomly.
Pair Corralation between Sabre and Mondee Holdings
If you would invest (100.00) in Mondee Holdings on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Mondee Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre vs. Mondee Holdings
Performance |
| Timeline |
| Sabre |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Mondee Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sabre and Mondee Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre and Mondee Holdings
The main advantage of trading using opposite Sabre and Mondee Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre position performs unexpectedly, Mondee Holdings 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 Mondee Holdings will offset losses from the drop in Mondee Holdings' long position.The idea behind Sabre and Mondee Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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