Correlation Between Virtus Investment and Wizz Air
Can any of the company-specific risk be diversified away by investing in both Virtus Investment 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 Virtus Investment and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners and Wizz Air Holdings, you can compare the effects of market volatilities on Virtus Investment 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 Virtus Investment with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Wizz Air.
Diversification Opportunities for Virtus Investment and Wizz Air
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Virtus and Wizz is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners 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 Virtus Investment 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 Virtus Investment Partners 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 Virtus Investment i.e., Virtus Investment and Wizz Air go up and down completely randomly.
Pair Corralation between Virtus Investment and Wizz Air
Assuming the 90 days horizon Virtus Investment Partners is expected to generate 0.57 times more return on investment than Wizz Air. However, Virtus Investment Partners is 1.75 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 -0.04 per unit of risk. If you would invest 20,743 in Virtus Investment Partners on November 7, 2024 and sell it today you would lose (843.00) from holding Virtus Investment Partners or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Virtus Investment Partners vs. Wizz Air Holdings
Performance |
| Timeline |
| Virtus Investment |
| Wizz Air Holdings |
Virtus Investment and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Wizz Air
The main advantage of trading using opposite Virtus Investment and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment 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.| Virtus Investment vs. KAUFMAN ET BROAD | Virtus Investment vs. TITANIUM TRANSPORTGROUP | Virtus Investment vs. China Resources Beer | Virtus Investment vs. BROADWIND ENRGY |
| Wizz Air vs. Broadwind | Wizz Air vs. EVS Broadcast Equipment | Wizz Air vs. Gaztransport Technigaz SA | Wizz Air vs. GOLD ROAD RES |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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