Correlation Between Mondee Holdings and Hilton Worldwide

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

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

Diversification Opportunities for Mondee Holdings and Hilton Worldwide

-0.75

Correlation Coefficient

Mondee Holdings  Hilton Worldwide

Pay attention - limited upside

The 3 months correlation between Mondee and Hilton is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide 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 Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of Mondee Holdings i.e., Mondee Holdings and Hilton Worldwide go up and down completely randomly.

Pair Corralation between Mondee Holdings and Hilton Worldwide

Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Hilton Worldwide. In addition to that, Mondee Holdings is 12.87 times more volatile than Hilton Worldwide Holdings. It trades about -0.32 of its total potential returns per unit of risk. Hilton Worldwide Holdings is currently generating about 0.23 per unit of volatility. If you would invest  21,797  in Hilton Worldwide Holdings on September 14, 2024 and sell it today you would earn a total of  3,793  from holding Hilton Worldwide Holdings or generate 17.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mondee Holdings  vs.  Hilton Worldwide Holdings

Mondee Holdings

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Hilton Worldwide Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hilton Worldwide Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Hilton Worldwide unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mondee Holdings and Hilton Worldwide

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

The idea behind Mondee Holdings and Hilton Worldwide 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 Commodity Directory module to find actively traded commodities issued by global exchanges.