Correlation Between New Residential and Wizz Air

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both New Residential 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 New Residential and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Residential Investment and Wizz Air Holdings, you can compare the effects of market volatilities on New Residential 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 New Residential with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Residential and Wizz Air.

Diversification Opportunities for New Residential and Wizz Air

NewWizzDiversified AwayNewWizzDiversified Away100%
0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between New and Wizz is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding New Residential Investment 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 New Residential 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 New Residential Investment 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 New Residential i.e., New Residential and Wizz Air go up and down completely randomly.

Pair Corralation between New Residential and Wizz Air

Assuming the 90 days trading horizon New Residential Investment is expected to generate 0.33 times more return on investment than Wizz Air. However, New Residential Investment is 3.07 times less risky than Wizz Air. It trades about 0.2 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about 0.03 per unit of risk. If you would invest  942.00  in New Residential Investment on October 26, 2024 and sell it today you would earn a total of  134.00  from holding New Residential Investment or generate 14.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

New Residential Investment  vs.  Wizz Air Holdings

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.1514N1 WI2
       Timeline  
New Residential Inve 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in New Residential Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, New Residential reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.51010.511
Wizz Air Holdings 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Wizz Air Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Wizz Air may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1415161718

New Residential and Wizz Air Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.48-2.6-1.73-0.860.00.891.822.753.694.62 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.1514N1 WI2
       Returns  

Pair Trading with New Residential and Wizz Air

The main advantage of trading using opposite New Residential and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Residential 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.
The idea behind New Residential Investment and Wizz Air Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes