Correlation Between Gol Intelligent and Aluminum
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Aluminum 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 Aluminum 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 Aluminum of, you can compare the effects of market volatilities on Gol Intelligent and Aluminum 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 Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Aluminum.
Diversification Opportunities for Gol Intelligent and Aluminum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Aluminum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum 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 Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Aluminum go up and down completely randomly.
Pair Corralation between Gol Intelligent and Aluminum
If you would invest 56.00 in Aluminum of on October 30, 2024 and sell it today you would earn a total of 6.00 from holding Aluminum of or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Aluminum of
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Aluminum |
Gol Intelligent and Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Aluminum
The main advantage of trading using opposite Gol Intelligent and Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Aluminum 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 Aluminum will offset losses from the drop in Aluminum's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Aluminum vs. Infrastrutture Wireless Italiane | Aluminum vs. Entravision Communications | Aluminum vs. AECOM TECHNOLOGY | Aluminum vs. NURAN WIRELESS 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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