Correlation Between XLMedia PLC and Wizz Air
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Wizz 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 XLMedia PLC and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Wizz Air Holdings, you can compare the effects of market volatilities on XLMedia PLC and Wizz 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 XLMedia PLC with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Wizz Air.
Diversification Opportunities for XLMedia PLC and Wizz Air
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between XLMedia and Wizz is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Wizz Air Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wizz Air Holdings and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Wizz Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wizz Air Holdings has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Wizz Air go up and down completely randomly.
Pair Corralation between XLMedia PLC and Wizz Air
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 1.75 times more return on investment than Wizz Air. However, XLMedia PLC is 1.75 times more volatile than Wizz Air Holdings. It trades about 0.0 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,650 in XLMedia PLC on November 29, 2024 and sell it today you would lose (612.00) from holding XLMedia PLC or give up 37.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Wizz Air Holdings
Performance |
| Timeline |
| XLMedia PLC |
| Wizz Air Holdings |
XLMedia PLC and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Wizz Air
The main advantage of trading using opposite XLMedia PLC and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Wizz 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 Wizz Air will offset losses from the drop in Wizz Air's long position.| XLMedia PLC vs. Symphony Environmental Technologies | XLMedia PLC vs. Abingdon Health Plc | XLMedia PLC vs. Vitec Software Group | XLMedia PLC vs. Optima Health plc |
| Wizz Air vs. BW Offshore | Wizz Air vs. Alaska Air Group | Wizz Air vs. Clean Power Hydrogen | Wizz Air vs. CleanTech Lithium plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |