Correlation Between Wizz Air and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Mesa Air 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 Mesa Air 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 Mesa Air Group, you can compare the effects of market volatilities on Wizz Air and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Mesa Air.
Diversification Opportunities for Wizz Air and Mesa Air
Modest diversification
The 3 months correlation between Wizz and Mesa is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Wizz Air i.e., Wizz Air and Mesa Air go up and down completely randomly.
Pair Corralation between Wizz Air and Mesa Air
Assuming the 90 days horizon Wizz Air is expected to generate 2.2 times less return on investment than Mesa Air. But when comparing it to its historical volatility, Wizz Air Holdings is 1.31 times less risky than Mesa Air. It trades about 0.1 of its potential returns per unit of risk. Mesa Air Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Mesa Air Group on October 24, 2024 and sell it today you would earn a total of 43.00 from holding Mesa Air Group or generate 47.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Wizz Air Holdings vs. Mesa Air Group
Performance |
| Timeline |
| Wizz Air Holdings |
| Mesa Air Group |
Wizz Air and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Mesa Air
The main advantage of trading using opposite Wizz Air and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Wizz Air vs. Copa Holdings SA | Wizz Air vs. United Airlines Holdings | Wizz Air vs. Delta Air Lines | Wizz Air vs. SkyWest |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |