Correlation Between Wizz Air and Stingray
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Wizz Air and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Stingray.
Diversification Opportunities for Wizz Air and Stingray
Very good diversification
The 3 months correlation between Wizz and Stingray is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Wizz Air i.e., Wizz Air and Stingray go up and down completely randomly.
Pair Corralation between Wizz Air and Stingray
If you would invest 1,770 in Wizz Air Holdings on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Wizz Air Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wizz Air Holdings vs. Stingray Group
Performance |
| Timeline |
| Wizz Air Holdings |
| Stingray Group |
Wizz Air and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Stingray
The main advantage of trading using opposite Wizz Air and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
| Stingray vs. KVH Industries | Stingray vs. Sphere Entertainment Co | Stingray vs. Hasbro Inc | Stingray vs. Iridium Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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