Correlation Between Nomad Foods and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Nomad Foods and Gol Intelligent 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 Nomad Foods and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomad Foods and Gol Intelligent Airlines, you can compare the effects of market volatilities on Nomad Foods and Gol Intelligent 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 Nomad Foods with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and Gol Intelligent.
Diversification Opportunities for Nomad Foods and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nomad and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and Gol Intelligent Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gol Intelligent Airlines and Nomad Foods 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 Nomad Foods are associated (or correlated) with Gol Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gol Intelligent Airlines has no effect on the direction of Nomad Foods i.e., Nomad Foods and Gol Intelligent go up and down completely randomly.
Pair Corralation between Nomad Foods and Gol Intelligent
If you would invest 1,496 in Nomad Foods on December 11, 2024 and sell it today you would earn a total of 334.00 from holding Nomad Foods or generate 22.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Nomad Foods vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Nomad Foods |
| Gol Intelligent Airlines |
Nomad Foods and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and Gol Intelligent
The main advantage of trading using opposite Nomad Foods and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods position performs unexpectedly, Gol Intelligent 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 Gol Intelligent will offset losses from the drop in Gol Intelligent's long position.| Nomad Foods vs. S E BANKEN A | ||
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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