Correlation Between Ryanair Holdings and Information Services

Can any of the company-specific risk be diversified away by investing in both Ryanair Holdings and Information Services 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 Ryanair Holdings and Information Services into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Ryanair Holdings and Information Services

0.05

Correlation Coefficient

Ryanair Holdings  Information Services

Significant diversification

The 3 months correlation between Ryanair and Information is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ryanair Holdings PLC and Information Services Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services and Ryanair Holdings 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 Ryanair Holdings PLC are associated (or correlated) with Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Ryanair Holdings i.e., Ryanair Holdings and Information Services go up and down completely randomly.

Pair Corralation between Ryanair Holdings and Information Services

Assuming the 90 days horizon Ryanair Holdings PLC is expected to generate 0.62 times more return on investment than Information Services. However, Ryanair Holdings PLC is 1.62 times less risky than Information Services. It trades about 0.2 of its potential returns per unit of risk. Information Services Group is currently generating about 0.06 per unit of risk. If you would invest  5,083  in Ryanair Holdings PLC on May 7, 2025 and sell it today you would earn a total of  1,277  from holding Ryanair Holdings PLC or generate 25.12% return on investment over 90 days.

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

Ryanair Holdings PLC  vs.  Information Services Group

Ryanair Holdings PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ryanair Holdings PLC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ryanair Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Information Services

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Information Services Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Information Services may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ryanair Holdings and Information Services

The main advantage of trading using opposite Ryanair Holdings and Information Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryanair Holdings position performs unexpectedly, Information Services 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 Information Services will offset losses from the drop in Information Services' long position.

The idea behind Ryanair Holdings PLC and Information Services Group 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.