Correlation Between Cellnex Telecom and Wizz Air
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Wizz Air 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 Cellnex Telecom and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellnex Telecom SA and Wizz Air Holdings, you can compare the effects of market volatilities on Cellnex Telecom and Wizz Air 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 Cellnex Telecom with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Wizz Air.
Diversification Opportunities for Cellnex Telecom and Wizz Air
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cellnex and Wizz is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Wizz Air Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wizz Air Holdings and Cellnex Telecom 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 Cellnex Telecom SA are associated (or correlated) with Wizz Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wizz Air Holdings has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Wizz Air go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Wizz Air
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 0.51 times more return on investment than Wizz Air. However, Cellnex Telecom SA is 1.96 times less risky than Wizz Air. It trades about 0.0 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.05 per unit of risk. If you would invest 3,664 in Cellnex Telecom SA on September 2, 2024 and sell it today you would lose (278.00) from holding Cellnex Telecom SA or give up 7.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Wizz Air Holdings
Performance |
| Timeline |
| Cellnex Telecom SA |
| Wizz Air Holdings |
Cellnex Telecom and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Wizz Air
The main advantage of trading using opposite Cellnex Telecom and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Wizz Air 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 Wizz Air will offset losses from the drop in Wizz Air's long position.| Cellnex Telecom vs. Datalogic | Cellnex Telecom vs. Sunny Optical Technology | Cellnex Telecom vs. Microchip Technology | Cellnex Telecom vs. Roper Technologies |
| Wizz Air vs. Blackrock World Mining | Wizz Air vs. Various Eateries PLC | Wizz Air vs. Sparebank 1 SR | Wizz Air vs. Beowulf Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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