Correlation Between Wizz Air and PUMA SE
Can any of the company-specific risk be diversified away by investing in both Wizz Air and PUMA SE 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 PUMA SE 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 PUMA SE UNSPADR, you can compare the effects of market volatilities on Wizz Air and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and PUMA SE.
Diversification Opportunities for Wizz Air and PUMA SE
Good diversification
The 3 months correlation between Wizz and PUMA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and PUMA SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE UNSPADR 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE UNSPADR has no effect on the direction of Wizz Air i.e., Wizz Air and PUMA SE go up and down completely randomly.
Pair Corralation between Wizz Air and PUMA SE
Assuming the 90 days trading horizon Wizz Air Holdings is expected to generate 1.03 times more return on investment than PUMA SE. However, Wizz Air is 1.03 times more volatile than PUMA SE UNSPADR. It trades about 0.11 of its potential returns per unit of risk. PUMA SE UNSPADR is currently generating about -0.24 per unit of risk. If you would invest 1,718 in Wizz Air Holdings on November 30, 2024 and sell it today you would earn a total of 298.00 from holding Wizz Air Holdings or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. PUMA SE UNSPADR
Performance |
| Timeline |
| Wizz Air Holdings |
| PUMA SE UNSPADR |
Wizz Air and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and PUMA SE
The main advantage of trading using opposite Wizz Air and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| Wizz Air vs. CARSALESCOM | Wizz Air vs. Warner Music Group | Wizz Air vs. Broadcom | Wizz Air vs. COPLAND ROAD CAPITAL |
| PUMA SE vs. Easy Software AG | PUMA SE vs. REVO INSURANCE SPA | PUMA SE vs. AXWAY SOFTWARE EO | PUMA SE vs. Insurance Australia Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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