Correlation Between Gol Intelligent and Boston Beer
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Boston Beer 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 Boston Beer 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 The Boston Beer, you can compare the effects of market volatilities on Gol Intelligent and Boston Beer 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 Boston Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Boston Beer.
Diversification Opportunities for Gol Intelligent and Boston Beer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Boston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and The Boston Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Beer 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 Boston Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Beer has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Boston Beer go up and down completely randomly.
Pair Corralation between Gol Intelligent and Boston Beer
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Boston Beer. In addition to that, Gol Intelligent is 3.38 times more volatile than The Boston Beer. It trades about 0.0 of its total potential returns per unit of risk. The Boston Beer is currently generating about 0.01 per unit of volatility. If you would invest 31,105 in The Boston Beer on September 14, 2024 and sell it today you would lose (1,205) from holding The Boston Beer or give up 3.87% 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. The Boston Beer
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Boston Beer |
Gol Intelligent and Boston Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Boston Beer
The main advantage of trading using opposite Gol Intelligent and Boston Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Boston Beer 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 Boston Beer will offset losses from the drop in Boston Beer's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Boston Beer vs. Tyson Foods | Boston Beer vs. QUEEN S ROAD | Boston Beer vs. Liberty Broadband | Boston Beer vs. Collins Foods Limited |
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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