Correlation Between Mondee Holdings and Haier Electronics

Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Haier Electronics 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 Haier Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mondee Holdings and Haier Electronics Group, you can compare the effects of market volatilities on Mondee Holdings and Haier Electronics 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 Haier Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Haier Electronics.

Diversification Opportunities for Mondee Holdings and Haier Electronics

0.0

Correlation Coefficient

Mondee Holdings  Haier Electronics

Pay attention - limited upside

The 3 months correlation between Mondee and Haier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Haier Electronics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Electronics 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 Haier Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Electronics has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Haier Electronics go up and down completely randomly.

Pair Corralation between Mondee Holdings and Haier Electronics

If you would invest  204.00  in Mondee Holdings on February 4, 2024 and sell it today you would earn a total of  38.00  from holding Mondee Holdings or generate 18.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mondee Holdings  vs.  Haier Electronics Group

Mondee Holdings

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mondee Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Mondee Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Haier Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haier Electronics Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Haier Electronics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Mondee Holdings and Haier Electronics

The main advantage of trading using opposite Mondee Holdings and Haier Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Haier Electronics 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 Haier Electronics will offset losses from the drop in Haier Electronics' long position.

The idea behind Mondee Holdings and Haier Electronics Group 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..