Correlation Between Gol Intelligent and H FARM
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and H FARM 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 H FARM 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 H FARM SPA, you can compare the effects of market volatilities on Gol Intelligent and H FARM 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 H FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and H FARM.
Diversification Opportunities for Gol Intelligent and H FARM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and 5JQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA 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 H FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and H FARM go up and down completely randomly.
Pair Corralation between Gol Intelligent and H FARM
If you would invest 12.00 in H FARM SPA on October 28, 2024 and sell it today you would earn a total of 0.00 from holding H FARM SPA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. H FARM SPA
Performance |
| Timeline |
| Gol Intelligent Airlines |
| H FARM SPA |
Gol Intelligent and H FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and H FARM
The main advantage of trading using opposite Gol Intelligent and H FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, H FARM 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 H FARM will offset losses from the drop in H FARM's long position.| Gol Intelligent vs. The Boston Beer | Gol Intelligent vs. National Beverage Corp | Gol Intelligent vs. Monster Beverage Corp | Gol Intelligent vs. alstria office REIT AG |
| H FARM vs. GOLD ROAD RES | H FARM vs. Iridium Communications | H FARM vs. Gaztransport Technigaz SA | H FARM 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |