Correlation Between BlueScope Steel and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both BlueScope Steel 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 BlueScope Steel and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueScope Steel Limited and Gol Intelligent Airlines, you can compare the effects of market volatilities on BlueScope Steel 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 BlueScope Steel with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueScope Steel and Gol Intelligent.
Diversification Opportunities for BlueScope Steel and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BlueScope and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BlueScope Steel Limited 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 BlueScope Steel 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 BlueScope Steel Limited 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 BlueScope Steel i.e., BlueScope Steel and Gol Intelligent go up and down completely randomly.
Pair Corralation between BlueScope Steel and Gol Intelligent
If you would invest 1,240 in BlueScope Steel Limited on November 21, 2024 and sell it today you would earn a total of 290.00 from holding BlueScope Steel Limited or generate 23.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BlueScope Steel Limited vs. Gol Intelligent Airlines
Performance |
Timeline |
BlueScope Steel |
Gol Intelligent Airlines |
BlueScope Steel and Gol Intelligent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BlueScope Steel and Gol Intelligent
The main advantage of trading using opposite BlueScope Steel and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueScope Steel 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.BlueScope Steel vs. GEAR4MUSIC LS 10 | ||
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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