Correlation Between GAMES OPERATORS and Wizz Air
Can any of the company-specific risk be diversified away by investing in both GAMES OPERATORS 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 GAMES OPERATORS and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMES OPERATORS SA and Wizz Air Holdings, you can compare the effects of market volatilities on GAMES OPERATORS 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 GAMES OPERATORS with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMES OPERATORS and Wizz Air.
Diversification Opportunities for GAMES OPERATORS and Wizz Air
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMES and Wizz is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS 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 GAMES OPERATORS i.e., GAMES OPERATORS and Wizz Air go up and down completely randomly.
Pair Corralation between GAMES OPERATORS and Wizz Air
Assuming the 90 days horizon GAMES OPERATORS SA is expected to generate 0.55 times more return on investment than Wizz Air. However, GAMES OPERATORS SA is 1.82 times less risky than Wizz Air. It trades about 0.04 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.08 per unit of risk. If you would invest 346.00 in GAMES OPERATORS SA on October 12, 2024 and sell it today you would earn a total of 4.00 from holding GAMES OPERATORS SA or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
GAMES OPERATORS SA vs. Wizz Air Holdings
Performance |
| Timeline |
| GAMES OPERATORS SA |
| Wizz Air Holdings |
GAMES OPERATORS and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMES OPERATORS and Wizz Air
The main advantage of trading using opposite GAMES OPERATORS and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMES OPERATORS 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.| GAMES OPERATORS vs. Wizz Air Holdings | GAMES OPERATORS vs. WIZZ AIR HLDGUNSPADR4 | GAMES OPERATORS vs. MYFAIR GOLD P | GAMES OPERATORS vs. LG Display 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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