Correlation Between Gol Intelligent and AUST AGRICULTURAL
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and AUST AGRICULTURAL 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 AUST AGRICULTURAL 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 AUST AGRICULTURAL, you can compare the effects of market volatilities on Gol Intelligent and AUST AGRICULTURAL 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 AUST AGRICULTURAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and AUST AGRICULTURAL.
Diversification Opportunities for Gol Intelligent and AUST AGRICULTURAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and AUST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and AUST AGRICULTURAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUST AGRICULTURAL 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 AUST AGRICULTURAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUST AGRICULTURAL has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and AUST AGRICULTURAL go up and down completely randomly.
Pair Corralation between Gol Intelligent and AUST AGRICULTURAL
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to generate about the same return on investment as AUST AGRICULTURAL. However, Gol Intelligent is 4.39 times more volatile than AUST AGRICULTURAL. It trades about 0.0 of its potential returns per unit of risk. AUST AGRICULTURAL is currently producing about -0.01 per unit of risk. If you would invest 95.00 in AUST AGRICULTURAL on November 27, 2024 and sell it today you would lose (10.00) from holding AUST AGRICULTURAL or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. AUST AGRICULTURAL
Performance |
| Timeline |
| Gol Intelligent Airlines |
| AUST AGRICULTURAL |
Gol Intelligent and AUST AGRICULTURAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and AUST AGRICULTURAL
The main advantage of trading using opposite Gol Intelligent and AUST AGRICULTURAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, AUST AGRICULTURAL 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 AUST AGRICULTURAL will offset losses from the drop in AUST AGRICULTURAL's long position.| Gol Intelligent vs. Merit Medical Systems | Gol Intelligent vs. EIDESVIK OFFSHORE NK | Gol Intelligent vs. United States Steel | Gol Intelligent vs. KOBE STEEL LTD |
| AUST AGRICULTURAL vs. The Yokohama Rubber | AUST AGRICULTURAL vs. Mitsubishi Materials | AUST AGRICULTURAL vs. APPLIED MATERIALS | AUST AGRICULTURAL vs. Heidelberg Materials AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |