Correlation Between Air New and WIZZ AIR
Can any of the company-specific risk be diversified away by investing in both Air New 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 Air New and WIZZ AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air New Zealand and WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on Air New 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 Air New with a short position of WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air New and WIZZ AIR.
Diversification Opportunities for Air New and WIZZ AIR
Good diversification
The 3 months correlation between Air and WIZZ is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Air New Zealand and WIZZ AIR HLDGUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIZZ AIR HLDGUNSPADR4 and Air New 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 Air New Zealand 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 HLDGUNSPADR4 has no effect on the direction of Air New i.e., Air New and WIZZ AIR go up and down completely randomly.
Pair Corralation between Air New and WIZZ AIR
Assuming the 90 days trading horizon Air New is expected to generate 12.86 times less return on investment than WIZZ AIR. But when comparing it to its historical volatility, Air New Zealand is 2.36 times less risky than WIZZ AIR. It trades about 0.0 of its potential returns per unit of risk. WIZZ AIR HLDGUNSPADR4 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 426.00 in WIZZ AIR HLDGUNSPADR4 on October 27, 2024 and sell it today you would lose (6.00) from holding WIZZ AIR HLDGUNSPADR4 or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air New Zealand vs. WIZZ AIR HLDGUNSPADR4
Performance |
| Timeline |
| Air New Zealand |
| WIZZ AIR HLDGUNSPADR4 |
Air New and WIZZ AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air New and WIZZ AIR
The main advantage of trading using opposite Air New and WIZZ AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air New 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.| Air New vs. Addtech AB | Air New vs. TITANIUM TRANSPORTGROUP | Air New vs. EVS Broadcast Equipment | Air New vs. Sunny Optical Technology |
| WIZZ AIR vs. Taylor Morrison Home | WIZZ AIR vs. OFFICE DEPOT | WIZZ AIR vs. SIDETRADE EO 1 | WIZZ AIR vs. VARIOUS EATERIES LS |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |