Correlation Between Gol Intelligent and H-FARM SPA
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and H-FARM SPA 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 SPA 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 SPA 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 SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and H-FARM SPA.
Diversification Opportunities for Gol Intelligent and H-FARM SPA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and H-FARM 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 SPA. 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 SPA go up and down completely randomly.
Pair Corralation between Gol Intelligent and H-FARM SPA
If you would invest 12.00 in H FARM SPA on November 3, 2024 and sell it today you would earn a total of 1.00 from holding H FARM SPA or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. H FARM SPA
Performance |
| Timeline |
| Gol Intelligent Airlines |
| H FARM SPA |
Gol Intelligent and H-FARM SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and H-FARM SPA
The main advantage of trading using opposite Gol Intelligent and H-FARM SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, H-FARM SPA 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 SPA will offset losses from the drop in H-FARM SPA's long position.| Gol Intelligent vs. VIENNA INSURANCE GR | Gol Intelligent vs. National Beverage Corp | Gol Intelligent vs. Safety Insurance Group | Gol Intelligent vs. Fevertree Drinks PLC |
| H-FARM SPA vs. InterContinental Hotels Group | H-FARM SPA vs. Choice Hotels International | H-FARM SPA vs. Summit Hotel Properties | H-FARM SPA vs. Pebblebrook Hotel Trust |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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