Correlation Between Wizz Air and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Wizz Air and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Jupiter Fund.
Diversification Opportunities for Wizz Air and Jupiter Fund
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wizz and Jupiter is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Wizz Air i.e., Wizz Air and Jupiter Fund go up and down completely randomly.
Pair Corralation between Wizz Air and Jupiter Fund
Assuming the 90 days trading horizon Wizz Air Holdings is expected to generate 2.34 times more return on investment than Jupiter Fund. However, Wizz Air is 2.34 times more volatile than Jupiter Fund Management. It trades about 0.02 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 128,800 in Wizz Air Holdings on September 2, 2024 and sell it today you would lose (100.00) from holding Wizz Air Holdings or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. Jupiter Fund Management
Performance |
| Timeline |
| Wizz Air Holdings |
| Jupiter Fund Management |
Wizz Air and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Jupiter Fund
The main advantage of trading using opposite Wizz Air and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Wizz Air vs. Blackrock World Mining | Wizz Air vs. Various Eateries PLC | Wizz Air vs. Sparebank 1 SR | Wizz Air vs. Beowulf Mining |
| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. SoftBank Group Corp | Jupiter Fund vs. OTP Bank Nyrt | Jupiter Fund vs. Las Vegas Sands |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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