Correlation Between Gol Intelligent and Big 5
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Big 5 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 Big 5 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 Big 5 Sporting, you can compare the effects of market volatilities on Gol Intelligent and Big 5 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 Big 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Big 5.
Diversification Opportunities for Gol Intelligent and Big 5
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Big is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Big 5 Sporting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big 5 Sporting 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 Big 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big 5 Sporting has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Big 5 go up and down completely randomly.
Pair Corralation between Gol Intelligent and Big 5
If you would invest 42.00 in Gol Intelligent Airlines on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Gol Intelligent Airlines or generate 0.0% 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. Big 5 Sporting
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Big 5 Sporting |
Gol Intelligent and Big 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Big 5
The main advantage of trading using opposite Gol Intelligent and Big 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Big 5 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 Big 5 will offset losses from the drop in Big 5's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Big 5 vs. Superior Plus Corp | Big 5 vs. SIVERS SEMICONDUCTORS AB | Big 5 vs. NorAm Drilling AS | Big 5 vs. Norsk Hydro ASA |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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