Correlation Between Fair Isaac and Wizz Air
Can any of the company-specific risk be diversified away by investing in both Fair Isaac 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 Fair Isaac and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Isaac Corp and Wizz Air Holdings, you can compare the effects of market volatilities on Fair Isaac 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 Fair Isaac with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Isaac and Wizz Air.
Diversification Opportunities for Fair Isaac and Wizz Air
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fair and Wizz is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fair Isaac Corp 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 Fair Isaac 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 Fair Isaac Corp 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 Fair Isaac i.e., Fair Isaac and Wizz Air go up and down completely randomly.
Pair Corralation between Fair Isaac and Wizz Air
Assuming the 90 days trading horizon Fair Isaac Corp is expected to generate 0.56 times more return on investment than Wizz Air. However, Fair Isaac Corp is 1.8 times less risky than Wizz Air. It trades about 0.28 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about 0.03 per unit of risk. If you would invest 157,250 in Fair Isaac Corp on August 31, 2024 and sell it today you would earn a total of 66,250 from holding Fair Isaac Corp or generate 42.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fair Isaac Corp vs. Wizz Air Holdings
Performance |
| Timeline |
| Fair Isaac Corp |
| Wizz Air Holdings |
Fair Isaac and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Isaac and Wizz Air
The main advantage of trading using opposite Fair Isaac and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Isaac 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.| Fair Isaac vs. Iridium Communications | Fair Isaac vs. AM EAGLE OUTFITTERS | Fair Isaac vs. Cogent Communications Holdings | Fair Isaac vs. GALENA MINING LTD |
| Wizz Air vs. ADRIATIC METALS LS 013355 | Wizz Air vs. Western Copper and | Wizz Air vs. AIR PRODCHEMICALS | Wizz Air vs. Sixt Leasing SE |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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