Correlation Between AEON MALL and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both AEON MALL 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 AEON MALL and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON MALL LTD and Gol Intelligent Airlines, you can compare the effects of market volatilities on AEON MALL 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 AEON MALL with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON MALL and Gol Intelligent.
Diversification Opportunities for AEON MALL and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEON and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEON MALL LTD 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 AEON MALL 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 AEON MALL LTD 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 AEON MALL i.e., AEON MALL and Gol Intelligent go up and down completely randomly.
Pair Corralation between AEON MALL and Gol Intelligent
Assuming the 90 days horizon AEON MALL LTD is expected to generate 0.18 times more return on investment than Gol Intelligent. However, AEON MALL LTD is 5.57 times less risky than Gol Intelligent. It trades about 0.02 of its potential returns per unit of risk. Gol Intelligent Airlines is currently generating about 0.0 per unit of risk. If you would invest 1,160 in AEON MALL LTD on September 4, 2024 and sell it today you would earn a total of 110.00 from holding AEON MALL LTD or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AEON MALL LTD vs. Gol Intelligent Airlines
Performance |
| Timeline |
| AEON MALL LTD |
| Gol Intelligent Airlines |
AEON MALL and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON MALL and Gol Intelligent
The main advantage of trading using opposite AEON MALL and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON MALL 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.| AEON MALL vs. Nok Airlines PCL | AEON MALL vs. CHIBA BANK | AEON MALL vs. OAKTRSPECLENDNEW | AEON MALL vs. Singapore Airlines Limited |
| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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