Correlation Between HF SINCLAIR and Wizz Air
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR 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 HF SINCLAIR and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF SINCLAIR P and Wizz Air Holdings, you can compare the effects of market volatilities on HF SINCLAIR 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 HF SINCLAIR with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Wizz Air.
Diversification Opportunities for HF SINCLAIR and Wizz Air
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and Wizz is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P 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 HF SINCLAIR 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 HF SINCLAIR P 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 HF SINCLAIR i.e., HF SINCLAIR and Wizz Air go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Wizz Air
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 0.52 times more return on investment than Wizz Air. However, HF SINCLAIR P is 1.94 times less risky than Wizz Air. It trades about 0.11 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.06 per unit of risk. If you would invest 3,673 in HF SINCLAIR P on August 31, 2024 and sell it today you would earn a total of 167.00 from holding HF SINCLAIR P or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. Wizz Air Holdings
Performance |
| Timeline |
| HF SINCLAIR P |
| Wizz Air Holdings |
HF SINCLAIR and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Wizz Air
The main advantage of trading using opposite HF SINCLAIR and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR 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.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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