Correlation Between Wizz Air and XChange TECINC
Can any of the company-specific risk be diversified away by investing in both Wizz Air and XChange TECINC 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 XChange TECINC 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 XChange TECINC, you can compare the effects of market volatilities on Wizz Air and XChange TECINC 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 XChange TECINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and XChange TECINC.
Diversification Opportunities for Wizz Air and XChange TECINC
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wizz and XChange is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and XChange TECINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XChange TECINC 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 XChange TECINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XChange TECINC has no effect on the direction of Wizz Air i.e., Wizz Air and XChange TECINC go up and down completely randomly.
Pair Corralation between Wizz Air and XChange TECINC
Assuming the 90 days horizon Wizz Air Holdings is expected to generate 0.36 times more return on investment than XChange TECINC. However, Wizz Air Holdings is 2.78 times less risky than XChange TECINC. It trades about -0.13 of its potential returns per unit of risk. XChange TECINC is currently generating about -0.06 per unit of risk. If you would invest 1,595 in Wizz Air Holdings on September 12, 2025 and sell it today you would lose (282.00) from holding Wizz Air Holdings or give up 17.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Wizz Air Holdings vs. XChange TECINC
Performance |
| Timeline |
| Wizz Air Holdings |
| XChange TECINC |
Wizz Air and XChange TECINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wizz Air and XChange TECINC
The main advantage of trading using opposite Wizz Air and XChange TECINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wizz Air position performs unexpectedly, XChange TECINC 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 XChange TECINC will offset losses from the drop in XChange TECINC's long position.| Wizz Air vs. Norwegian Air Shuttle | Wizz Air vs. Aegean Airlines SA | Wizz Air vs. Lonking Holdings Ltd | Wizz Air vs. Cadeler AS |
| XChange TECINC vs. Wizz Air Holdings | XChange TECINC vs. Alaska Air Group | XChange TECINC vs. ICL Israel Chemicals | XChange TECINC vs. Westinghouse Air Brake |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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