Correlation Between FORWARD AIR and WIZZ AIR

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and WIZZ AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and WIZZ AIR.

Diversification Opportunities for FORWARD AIR and WIZZ AIR

FORWARDWIZZDiversified AwayFORWARDWIZZDiversified Away100%
-0.41
  Correlation Coefficient

Very good diversification

The 3 months correlation between FORWARD and WIZZ is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and WIZZ AIR HLDGUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIZZ AIR HLDGUNSPADR4 and FORWARD 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 FORWARD AIR P 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 HLDGUNSPADR4 has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and WIZZ AIR go up and down completely randomly.

Pair Corralation between FORWARD AIR and WIZZ AIR

Assuming the 90 days horizon FORWARD AIR P is expected to under-perform the WIZZ AIR. But the stock apears to be less risky and, when comparing its historical volatility, FORWARD AIR P is 1.03 times less risky than WIZZ AIR. The stock trades about -0.01 of its potential returns per unit of risk. The WIZZ AIR HLDGUNSPADR4 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  384.00  in WIZZ AIR HLDGUNSPADR4 on September 21, 2024 and sell it today you would earn a total of  56.00  from holding WIZZ AIR HLDGUNSPADR4 or generate 14.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

FORWARD AIR P  vs.  WIZZ AIR HLDGUNSPADR4

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-5051015
JavaScript chart by amCharts 3.21.15FA2 WI20
       Timeline  
FORWARD AIR P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days FORWARD AIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FORWARD AIR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec28293031323334353637
WIZZ AIR HLDGUNSPADR4 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in WIZZ AIR HLDGUNSPADR4 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WIZZ AIR reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec3.63.844.24.44.64.85

FORWARD AIR and WIZZ AIR Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.09-5.31-3.53-1.750.01.713.475.247.018.77 0.01700.01750.01800.01850.01900.01950.0200
JavaScript chart by amCharts 3.21.15FA2 WI20
       Returns  

Pair Trading with FORWARD AIR and WIZZ AIR

The main advantage of trading using opposite FORWARD AIR and WIZZ AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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 FORWARD AIR P and WIZZ AIR HLDGUNSPADR4 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments