Correlation Between Gol Intelligent and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Aegean Airlines 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 Gol Intelligent and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gol Intelligent Airlines and Aegean Airlines SA, you can compare the effects of market volatilities on Gol Intelligent and Aegean Airlines 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 Gol Intelligent with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Aegean Airlines.
Diversification Opportunities for Gol Intelligent and Aegean Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Aegean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Gol Intelligent 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 Gol Intelligent Airlines are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Aegean Airlines go up and down completely randomly.
Pair Corralation between Gol Intelligent and Aegean Airlines
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Aegean Airlines. In addition to that, Gol Intelligent is 5.12 times more volatile than Aegean Airlines SA. It trades about -0.03 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.02 per unit of volatility. If you would invest 1,051 in Aegean Airlines SA on August 27, 2024 and sell it today you would lose (117.00) from holding Aegean Airlines SA or give up 11.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Aegean Airlines SA
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Aegean Airlines SA |
Gol Intelligent and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Aegean Airlines
The main advantage of trading using opposite Gol Intelligent and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Gol Intelligent vs. Jupiter Fund Management | Gol Intelligent vs. Public Storage | Gol Intelligent vs. AGF Management Limited | Gol Intelligent vs. Fidelity National Information |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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