Correlation Between Wizz Air and Microbot Medical

Can any of the company-specific risk be diversified away by investing in both Wizz Air and Microbot Medical 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 Microbot Medical 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 Microbot Medical, you can compare the effects of market volatilities on Wizz Air and Microbot Medical 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 Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wizz Air and Microbot Medical.

Diversification Opportunities for Wizz Air and Microbot Medical

0.7

Correlation Coefficient

Wizz Air  Microbot Medical

Poor diversification

The 3 months correlation between Wizz and Microbot is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Wizz Air Holdings and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Wizz Air i.e., Wizz Air and Microbot Medical go up and down completely randomly.

Pair Corralation between Wizz Air and Microbot Medical

Assuming the 90 days horizon Wizz Air Holdings is expected to generate 0.41 times more return on investment than Microbot Medical. However, Wizz Air Holdings is 2.45 times less risky than Microbot Medical. It trades about -0.09 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.07 per unit of risk. If you would invest  1,449  in Wizz Air Holdings on September 17, 2025 and sell it today you would lose (136.00) from holding Wizz Air Holdings or give up 9.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.56%
Values	Daily Returns

Wizz Air Holdings  vs.  Microbot Medical

Wizz Air Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Wizz Air Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Microbot Medical

Risk-Adjusted Performance

Weakest

Over the last 90 days Microbot Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Wizz Air and Microbot Medical

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

The idea behind Wizz Air Holdings and Microbot Medical 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.