Correlation Between Wizz Air and Inspiration Healthcare
Can any of the company-specific risk be diversified away by investing in both Wizz Air and Inspiration Healthcare 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 Wizz Air and Inspiration Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wizz Air Holdings and Inspiration Healthcare Group, you can compare the effects of market volatilities on Wizz Air and Inspiration Healthcare 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 Wizz Air with a short position of Inspiration Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Inspiration Healthcare.
Diversification Opportunities for Wizz Air and Inspiration Healthcare
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wizz and Inspiration is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Inspiration Healthcare Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspiration Healthcare and Wizz 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 Wizz Air Holdings are associated (or correlated) with Inspiration Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspiration Healthcare has no effect on the direction of Wizz Air i.e., Wizz Air and Inspiration Healthcare go up and down completely randomly.
Pair Corralation between Wizz Air and Inspiration Healthcare
Assuming the 90 days trading horizon Wizz Air Holdings is expected to under-perform the Inspiration Healthcare. In addition to that, Wizz Air is 1.14 times more volatile than Inspiration Healthcare Group. It trades about -0.08 of its total potential returns per unit of risk. Inspiration Healthcare Group is currently generating about -0.09 per unit of volatility. If you would invest 2,300 in Inspiration Healthcare Group on August 31, 2025 and sell it today you would lose (275.00) from holding Inspiration Healthcare Group or give up 11.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. Inspiration Healthcare Group
Performance |
| Timeline |
| Wizz Air Holdings |
| Inspiration Healthcare |
Wizz Air and Inspiration Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and Inspiration Healthcare
The main advantage of trading using opposite Wizz Air and Inspiration Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, Inspiration Healthcare 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 Inspiration Healthcare will offset losses from the drop in Inspiration Healthcare's long position.| Wizz Air vs. Ecclesiastical Insurance Office | Wizz Air vs. Clean Power Hydrogen | Wizz Air vs. CleanTech Lithium plc | Wizz Air vs. Cairn Homes PLC |
| Inspiration Healthcare vs. Jacquet Metal Service | Inspiration Healthcare vs. Heavitree Brewery | Inspiration Healthcare vs. Cornish Metals | Inspiration Healthcare vs. GreenX Metals |
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.
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