Correlation Between Atome Energy and Wizz Air

Can any of the company-specific risk be diversified away by investing in both Atome Energy 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 Atome Energy and Wizz Air into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atome Energy PLC and Wizz Air Holdings, you can compare the effects of market volatilities on Atome Energy 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 Atome Energy with a short position of Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atome Energy and Wizz Air.

Diversification Opportunities for Atome Energy and Wizz Air

-0.74

Correlation Coefficient

Atome Energy  Wizz Air

Pay attention - limited upside

The 3 months correlation between Atome and Wizz is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atome Energy PLC and Wizz Air Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wizz Air Holdings and Atome Energy 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 Atome Energy PLC 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 Holdings has no effect on the direction of Atome Energy i.e., Atome Energy and Wizz Air go up and down completely randomly.

Pair Corralation between Atome Energy and Wizz Air

Assuming the 90 days trading horizon Atome Energy PLC is expected to generate 1.11 times more return on investment than Wizz Air. However, Atome Energy is 1.11 times more volatile than Wizz Air Holdings. It trades about 0.23 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.05 per unit of risk. If you would invest  2,800  in Atome Energy PLC on April 4, 2025 and sell it today you would earn a total of  2,550  from holding Atome Energy PLC or generate 91.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Atome Energy PLC  vs.  Wizz Air Holdings

Atome Energy PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atome Energy PLC are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Atome Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Wizz Air Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wizz Air Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Atome Energy and Wizz Air

The main advantage of trading using opposite Atome Energy and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atome Energy 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 Atome Energy PLC and Wizz Air Holdings 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.