Correlation Between Wizz Air and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Comba Telecom 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 Comba Telecom 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 Comba Telecom Systems, you can compare the effects of market volatilities on Wizz Air and Comba Telecom 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 Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Comba Telecom.
Diversification Opportunities for Wizz Air and Comba Telecom
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wizz and Comba is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems 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 Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of Wizz Air i.e., Wizz Air and Comba Telecom go up and down completely randomly.
Pair Corralation between Wizz Air and Comba Telecom
Assuming the 90 days trading horizon Wizz Air is expected to generate 1.52 times less return on investment than Comba Telecom. But when comparing it to its historical volatility, Wizz Air Holdings is 1.32 times less risky than Comba Telecom. It trades about 0.02 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Comba Telecom Systems on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Comba Telecom Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. Comba Telecom Systems
Performance |
| Timeline |
| Wizz Air Holdings |
| Comba Telecom Systems |
Wizz Air and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Comba Telecom
The main advantage of trading using opposite Wizz Air and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| Wizz Air vs. INTERSHOP Communications Aktiengesellschaft | Wizz Air vs. ARDAGH METAL PACDL 0001 | Wizz Air vs. Jacquet Metal Service | Wizz Air vs. Yuexiu Transport Infrastructure |
| Comba Telecom vs. Wizz Air Holdings | Comba Telecom vs. PEPTONIC MEDICAL | Comba Telecom vs. Ryanair Holdings plc | Comba Telecom vs. GLOBUS MEDICAL A |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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