Correlation Between GOLD ROAD and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both GOLD ROAD 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 GOLD ROAD and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOLD ROAD RES and Gol Intelligent Airlines, you can compare the effects of market volatilities on GOLD ROAD 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 GOLD ROAD with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLD ROAD and Gol Intelligent.
Diversification Opportunities for GOLD ROAD and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOLD and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GOLD ROAD RES 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 GOLD ROAD 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 GOLD ROAD RES 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 GOLD ROAD i.e., GOLD ROAD and Gol Intelligent go up and down completely randomly.
Pair Corralation between GOLD ROAD and Gol Intelligent
If you would invest 113.00 in GOLD ROAD RES on September 24, 2024 and sell it today you would earn a total of 8.00 from holding GOLD ROAD RES or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GOLD ROAD RES vs. Gol Intelligent Airlines
Performance |
| Timeline |
| GOLD ROAD RES |
| Gol Intelligent Airlines |
GOLD ROAD and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLD ROAD and Gol Intelligent
The main advantage of trading using opposite GOLD ROAD and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLD ROAD 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.| GOLD ROAD vs. EEDUCATION ALBERT AB | GOLD ROAD vs. G8 EDUCATION | GOLD ROAD vs. EMBARK EDUCATION LTD | GOLD ROAD vs. Host Hotels Resorts |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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