Correlation Between Atour Lifestyle and Mondee Holdings

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

By analyzing existing cross correlation between Atour Lifestyle Holdings and Mondee Holdings, you can compare the effects of market volatilities on Atour Lifestyle 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 Atour Lifestyle with a short position of Mondee Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atour Lifestyle and Mondee Holdings.

Diversification Opportunities for Atour Lifestyle and Mondee Holdings

0.0

Correlation Coefficient

Atour Lifestyle  Mondee Holdings

Pay attention - limited upside

The 3 months correlation between Atour and Mondee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atour Lifestyle Holdings and Mondee Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondee Holdings and Atour Lifestyle 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 Atour Lifestyle Holdings 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 Atour Lifestyle i.e., Atour Lifestyle and Mondee Holdings go up and down completely randomly.

Pair Corralation between Atour Lifestyle and Mondee Holdings

If you would invest  1,817  in Atour Lifestyle Holdings on December 5, 2024 and sell it today you would earn a total of  1,103  from holding Atour Lifestyle Holdings or generate 60.7% return on investment over 90 days.

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

Atour Lifestyle Holdings  vs.  Mondee Holdings

Atour Lifestyle Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Atour Lifestyle Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Atour Lifestyle unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mondee Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mondee Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Mondee Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Atour Lifestyle and Mondee Holdings

The main advantage of trading using opposite Atour Lifestyle and Mondee Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atour Lifestyle 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 Atour Lifestyle Holdings 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.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.