Correlation Between Wizz Air and MHP Hotel
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By analyzing existing cross correlation between Wizz Air Holdings and MHP Hotel AG, you can compare the effects of market volatilities on Wizz Air and MHP Hotel 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 MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and MHP Hotel.
Diversification Opportunities for Wizz Air and MHP Hotel
Average diversification
The 3 months correlation between Wizz and MHP is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel AG 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 MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of Wizz Air i.e., Wizz Air and MHP Hotel go up and down completely randomly.
Pair Corralation between Wizz Air and MHP Hotel
Assuming the 90 days trading horizon Wizz Air Holdings is expected to under-perform the MHP Hotel. In addition to that, Wizz Air is 1.23 times more volatile than MHP Hotel AG. It trades about -0.08 of its total potential returns per unit of risk. MHP Hotel AG is currently generating about 0.09 per unit of volatility. If you would invest 120.00 in MHP Hotel AG on October 12, 2024 and sell it today you would earn a total of 5.00 from holding MHP Hotel AG or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. MHP Hotel AG
Performance |
| Timeline |
| Wizz Air Holdings |
| MHP Hotel AG |
Wizz Air and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and MHP Hotel
The main advantage of trading using opposite Wizz Air and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, MHP Hotel 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| Wizz Air vs. CHINA TONTINE WINES | Wizz Air vs. Heidelberg Materials AG | Wizz Air vs. Treasury Wine Estates | Wizz Air vs. Compagnie Plastic Omnium |
| MHP Hotel vs. United Utilities Group | MHP Hotel vs. Algonquin Power Utilities | MHP Hotel vs. Tencent Music Entertainment | MHP Hotel vs. Wizz Air Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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