Correlation Between Mondee Holdings and Atour Lifestyle

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

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

Diversification Opportunities for Mondee Holdings and Atour Lifestyle

0.0

Correlation Coefficient

Mondee Holdings  Atour Lifestyle

Pay attention - limited upside

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

Pair Corralation between Mondee Holdings and Atour Lifestyle

If you would invest  2,173  in Atour Lifestyle Holdings on December 4, 2024 and sell it today you would earn a total of  767.00  from holding Atour Lifestyle Holdings or generate 35.3% return on investment over 90 days.

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

Mondee Holdings  vs.  Atour Lifestyle Holdings

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.

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.

Pair Trading with Mondee Holdings and Atour Lifestyle

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

The idea behind Mondee Holdings and Atour Lifestyle 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.