Correlation Between China Eastern and Wizz Air
Can any of the company-specific risk be diversified away by investing in both China Eastern 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 China Eastern and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Eastern Airlines and Wizz Air Holdings, you can compare the effects of market volatilities on China Eastern 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 China Eastern with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Eastern and Wizz Air.
Diversification Opportunities for China Eastern and Wizz Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Wizz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines 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 China Eastern 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 China Eastern Airlines 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 China Eastern i.e., China Eastern and Wizz Air go up and down completely randomly.
Pair Corralation between China Eastern and Wizz Air
If you would invest 1,711 in Wizz Air Holdings on December 28, 2024 and sell it today you would earn a total of 489.00 from holding Wizz Air Holdings or generate 28.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Eastern Airlines vs. Wizz Air Holdings
Performance |
Timeline |
China Eastern Airlines |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Wizz Air Holdings |
China Eastern and Wizz Air Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Eastern and Wizz Air
The main advantage of trading using opposite China Eastern and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Eastern 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.China Eastern vs. Simon Property Group | China Eastern vs. Arhaus Inc | China Eastern vs. Clearmind Medicine Common | China Eastern vs. Radcom |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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