Correlation Between Wizz Air and James River
Can any of the company-specific risk be diversified away by investing in both Wizz Air and James River 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 James River 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 James River Group, you can compare the effects of market volatilities on Wizz Air and James River 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 James River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and James River.
Diversification Opportunities for Wizz Air and James River
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wizz and James is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and James River Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James River Group 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 James River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James River Group has no effect on the direction of Wizz Air i.e., Wizz Air and James River go up and down completely randomly.
Pair Corralation between Wizz Air and James River
Assuming the 90 days horizon Wizz Air Holdings is expected to under-perform the James River. But the pink sheet apears to be less risky and, when comparing its historical volatility, Wizz Air Holdings is 1.63 times less risky than James River. The pink sheet trades about -0.07 of its potential returns per unit of risk. The James River Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 538.00 in James River Group on September 7, 2025 and sell it today you would earn a total of 57.00 from holding James River Group or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wizz Air Holdings vs. James River Group
Performance |
| Timeline |
| Wizz Air Holdings |
| James River Group |
Wizz Air and James River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and James River
The main advantage of trading using opposite Wizz Air and James River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, James River 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 James River will offset losses from the drop in James River's long position.| Wizz Air vs. E Home Household Service | Wizz Air vs. World of Wireless | Wizz Air vs. Infinite Technology Corp | Wizz Air vs. Pintec Technology Holdings |
| James River vs. Guangdong Investment Limited | James River vs. Huahui Education Group | James River vs. AG Mortgage Investment | James River vs. ITT Educational Services |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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