Correlation Between Mondee Holdings and Yatra Online
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings and Yatra Online 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 Yatra Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Yatra Online, you can compare the effects of market volatilities on Mondee Holdings and Yatra Online 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 Yatra Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Yatra Online.
Diversification Opportunities for Mondee Holdings and Yatra Online
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mondee and Yatra is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Yatra Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatra Online 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 Yatra Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatra Online has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Yatra Online go up and down completely randomly.
Pair Corralation between Mondee Holdings and Yatra Online
Given the investment horizon of 90 days Mondee Holdings is expected to generate 1.23 times more return on investment than Yatra Online. However, Mondee Holdings is 1.23 times more volatile than Yatra Online. It trades about 0.16 of its potential returns per unit of risk. Yatra Online is currently generating about -0.12 per unit of risk. If you would invest 209.00 in Mondee Holdings on February 5, 2024 and sell it today you would earn a total of 33.00 from holding Mondee Holdings or generate 15.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mondee Holdings vs. Yatra Online
Performance |
Timeline |
Mondee Holdings |
Yatra Online |
Mondee Holdings and Yatra Online Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mondee Holdings and Yatra Online
The main advantage of trading using opposite Mondee Holdings and Yatra Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings position performs unexpectedly, Yatra Online 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 Yatra Online will offset losses from the drop in Yatra Online's long position.Mondee Holdings vs. TUI AG | Mondee Holdings vs. Inspirato | Mondee Holdings vs. TripAdvisor | Mondee Holdings vs. Travel Leisure Co |
Yatra Online vs. TUI AG | Yatra Online vs. Inspirato | Yatra Online vs. TripAdvisor | Yatra Online vs. Travel Leisure Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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