Correlation Between Gol Intelligent and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on Gol Intelligent and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and GOLD ROAD.
Diversification Opportunities for Gol Intelligent and GOLD ROAD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and GOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and GOLD ROAD go up and down completely randomly.
Pair Corralation between Gol Intelligent and GOLD ROAD
If you would invest 96.00 in GOLD ROAD RES on October 13, 2024 and sell it today you would earn a total of 33.00 from holding GOLD ROAD RES or generate 34.38% 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. GOLD ROAD RES
Performance |
| Timeline |
| Gol Intelligent Airlines |
| GOLD ROAD RES |
Gol Intelligent and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and GOLD ROAD
The main advantage of trading using opposite Gol Intelligent and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Gol Intelligent vs. Southwest Airlines Co | Gol Intelligent vs. DEVRY EDUCATION GRP | Gol Intelligent vs. CAREER EDUCATION | Gol Intelligent vs. American Public Education |
| GOLD ROAD vs. OFFICE DEPOT | GOLD ROAD vs. Fukuyama Transporting Co | GOLD ROAD vs. ALERION CLEANPOWER | GOLD ROAD vs. The Home Depot |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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