Correlation Between Wizz Air and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Komercni Banka 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 Komercni Banka 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 Komercni Banka, you can compare the effects of market volatilities on Wizz Air and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Komercni Banka.
Diversification Opportunities for Wizz Air and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wizz and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Wizz Air i.e., Wizz Air and Komercni Banka go up and down completely randomly.
Pair Corralation between Wizz Air and Komercni Banka
Assuming the 90 days trading horizon Wizz Air Holdings is expected to under-perform the Komercni Banka. In addition to that, Wizz Air is 238.75 times more volatile than Komercni Banka. It trades about -0.03 of its total potential returns per unit of risk. Komercni Banka is currently generating about 0.04 per unit of volatility. If you would invest 53,257 in Komercni Banka on September 3, 2024 and sell it today you would earn a total of 143.00 from holding Komercni Banka or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Wizz Air Holdings vs. Komercni Banka
Performance |
| Timeline |
| Wizz Air Holdings |
| Komercni Banka |
Wizz Air and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Komercni Banka
The main advantage of trading using opposite Wizz Air and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Wizz Air vs. Cornish Metals | Wizz Air vs. Hansa Investment | Wizz Air vs. Gear4music Plc | Wizz Air vs. Panther Metals PLC |
| Komercni Banka vs. Atresmedia | Komercni Banka vs. Fonix Mobile plc | Komercni Banka vs. Flutter Entertainment PLC | Komercni Banka vs. Catalyst Media 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |