Correlation Between Wizz Air and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Wizz Air and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Blackstone Loan.
Diversification Opportunities for Wizz Air and Blackstone Loan
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wizz and Blackstone is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Wizz Air i.e., Wizz Air and Blackstone Loan go up and down completely randomly.
Pair Corralation between Wizz Air and Blackstone Loan
Assuming the 90 days trading horizon Wizz Air Holdings is expected to under-perform the Blackstone Loan. In addition to that, Wizz Air is 2.48 times more volatile than Blackstone Loan Financing. It trades about -0.09 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.07 per unit of volatility. If you would invest 6,200 in Blackstone Loan Financing on October 11, 2024 and sell it today you would earn a total of 200.00 from holding Blackstone Loan Financing or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Wizz Air Holdings vs. Blackstone Loan Financing
Performance |
| Timeline |
| Wizz Air Holdings |
| Blackstone Loan Financing |
Wizz Air and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Blackstone Loan
The main advantage of trading using opposite Wizz Air and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Wizz Air vs. Prosiebensat 1 Media | Wizz Air vs. G5 Entertainment AB | Wizz Air vs. iShares Physical Silver | Wizz Air vs. Lundin Mining Corp |
| Blackstone Loan vs. Jacquet Metal Service | Blackstone Loan vs. Wizz Air Holdings | Blackstone Loan vs. GreenX Metals | Blackstone Loan vs. URU Metals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |