Correlation Between APA and WIZZ AIR
Can any of the company-specific risk be diversified away by investing in both APA 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 APA and WIZZ AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APA Group and WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on APA 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 APA with a short position of WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of APA and WIZZ AIR.
Diversification Opportunities for APA and WIZZ AIR
Very good diversification
The 3 months correlation between APA and WIZZ is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding APA Group 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 APA 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 APA Group 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 APA i.e., APA and WIZZ AIR go up and down completely randomly.
Pair Corralation between APA and WIZZ AIR
Assuming the 90 days horizon APA Group is expected to under-perform the WIZZ AIR. But the stock apears to be less risky and, when comparing its historical volatility, APA Group is 2.4 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 404.00 in WIZZ AIR HLDGUNSPADR4 on November 1, 2024 and sell it today you would earn a total of 20.00 from holding WIZZ AIR HLDGUNSPADR4 or generate 4.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
APA Group vs. WIZZ AIR HLDGUNSPADR4
Performance |
Timeline |
APA Group |
WIZZ AIR HLDGUNSPADR4 |
APA and WIZZ AIR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with APA and WIZZ AIR
The main advantage of trading using opposite APA and WIZZ AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APA 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.APA vs. WillScot Mobile Mini | ||
APA vs. SOCKET MOBILE NEW | ||
APA vs. Jacquet Metal Service | ||
APA vs. AEON METALS LTD |
WIZZ AIR vs. Dairy Farm International | ||
WIZZ AIR vs. Australian Agricultural | ||
WIZZ AIR vs. Globex Mining Enterprises | ||
WIZZ AIR vs. FARM 51 GROUP |
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.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Commodity Directory Find actively traded commodities issued by global exchanges |