Correlation Between Wizz Air and Bet At
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Bet At 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 Wizz Air and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wizz Air Holdings and bet at home AG, you can compare the effects of market volatilities on Wizz Air and Bet At 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 Wizz Air with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Bet At.
Diversification Opportunities for Wizz Air and Bet At
Good diversification
The 3 months correlation between Wizz and Bet is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and Wizz Air 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 Wizz Air Holdings are associated (or correlated) with Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Wizz Air i.e., Wizz Air and Bet At go up and down completely randomly.
Pair Corralation between Wizz Air and Bet At
Assuming the 90 days trading horizon Wizz Air Holdings is expected to generate 0.87 times more return on investment than Bet At. However, Wizz Air Holdings is 1.15 times less risky than Bet At. It trades about -0.03 of its potential returns per unit of risk. bet at home AG is currently generating about -0.03 per unit of risk. If you would invest 3,183 in Wizz Air Holdings on November 5, 2024 and sell it today you would lose (1,651) from holding Wizz Air Holdings or give up 51.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. bet at home AG
Performance |
| Timeline |
| Wizz Air Holdings |
| bet at home |
Wizz Air and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Bet At
The main advantage of trading using opposite Wizz Air and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Wizz Air vs. H2O Retailing | Wizz Air vs. TRADEGATE | Wizz Air vs. Minerals Technologies | Wizz Air vs. Firan Technology Group |
| Bet At vs. UNIVERSAL DISPLAY | Bet At vs. TRAVEL LEISURE DL 01 | Bet At vs. FIRST SHIP LEASE | Bet At vs. ARISTOCRAT LEISURE |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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