Correlation Between Trip Group and Mondee Holdings
Can any of the company-specific risk be diversified away by investing in both Trip Group 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 Trip Group and Mondee Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trip Group Ltd and Mondee Holdings, you can compare the effects of market volatilities on Trip Group 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 Trip Group with a short position of Mondee Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and Mondee Holdings.
Diversification Opportunities for Trip Group and Mondee Holdings
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trip and Mondee is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Trip Group Ltd and Mondee Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondee Holdings and Trip Group 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 Trip Group Ltd 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 Trip Group i.e., Trip Group and Mondee Holdings go up and down completely randomly.
Pair Corralation between Trip Group and Mondee Holdings
Given the investment horizon of 90 days Trip Group Ltd is expected to generate 0.58 times more return on investment than Mondee Holdings. However, Trip Group Ltd is 1.72 times less risky than Mondee Holdings. It trades about 0.11 of its potential returns per unit of risk. Mondee Holdings is currently generating about -0.06 per unit of risk. If you would invest 3,656 in Trip Group Ltd on August 28, 2024 and sell it today you would earn a total of 2,797 from holding Trip Group Ltd or generate 76.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trip Group Ltd vs. Mondee Holdings
Performance |
| Timeline |
| Trip Group |
| Mondee Holdings |
Trip Group and Mondee Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trip Group and Mondee Holdings
The main advantage of trading using opposite Trip Group and Mondee Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trip Group 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.| Trip Group vs. Expedia Group | Trip Group vs. Booking Holdings | Trip Group vs. Despegar Corp | Trip Group vs. Travel Leisure Co |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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