Correlation Between Wizz Air and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Wizz Air and UNIQA Insurance 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 UNIQA Insurance 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 UNIQA Insurance Group, you can compare the effects of market volatilities on Wizz Air and UNIQA Insurance 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 UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and UNIQA Insurance.
Diversification Opportunities for Wizz Air and UNIQA Insurance
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wizz and UNIQA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group 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 UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Wizz Air i.e., Wizz Air and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Wizz Air and UNIQA Insurance
Assuming the 90 days trading horizon Wizz Air Holdings is expected to under-perform the UNIQA Insurance. In addition to that, Wizz Air is 4.62 times more volatile than UNIQA Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.01 per unit of volatility. If you would invest 716.00 in UNIQA Insurance Group on August 31, 2024 and sell it today you would earn a total of 6.00 from holding UNIQA Insurance Group or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.24% |
| Values | Daily Returns |
Wizz Air Holdings vs. UNIQA Insurance Group
Performance |
| Timeline |
| Wizz Air Holdings |
| UNIQA Insurance Group |
Wizz Air and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and UNIQA Insurance
The main advantage of trading using opposite Wizz Air and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Wizz Air vs. Neometals | Wizz Air vs. Coor Service Management | Wizz Air vs. Aeorema Communications Plc | Wizz Air vs. JLEN Environmental Assets |
| UNIQA Insurance vs. Wizz Air Holdings | UNIQA Insurance vs. Applied Materials | UNIQA Insurance vs. Vulcan Materials Co | UNIQA Insurance vs. Martin Marietta Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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