Correlation Between WESANA HEALTH and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and Gol Intelligent Airlines, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and Gol Intelligent.
Diversification Opportunities for WESANA HEALTH and Gol Intelligent
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between WESANA and Gol is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD 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 WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and Gol Intelligent go up and down completely randomly.
Pair Corralation between WESANA HEALTH and Gol Intelligent
If you would invest 42.00 in Gol Intelligent Airlines on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Gol Intelligent Airlines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. Gol Intelligent Airlines
Performance |
| Timeline |
| WESANA HEALTH HOLD |
| Gol Intelligent Airlines |
WESANA HEALTH and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESANA HEALTH and Gol Intelligent
The main advantage of trading using opposite WESANA HEALTH and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.| WESANA HEALTH vs. Wyndham Hotels Resorts | WESANA HEALTH vs. MHP Hotel AG | WESANA HEALTH vs. Xenia Hotels Resorts | WESANA HEALTH vs. Medical Properties Trust |
| Gol Intelligent vs. Costco Wholesale Corp | Gol Intelligent vs. Nippon Light Metal | Gol Intelligent vs. JIAHUA STORES | Gol Intelligent vs. Air Transport Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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