Correlation Between Gol Intelligent and Globe Trade
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Globe Trade 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 Globe Trade 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 Globe Trade Centre, you can compare the effects of market volatilities on Gol Intelligent and Globe Trade 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 Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Globe Trade.
Diversification Opportunities for Gol Intelligent and Globe Trade
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Globe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre 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 Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Globe Trade go up and down completely randomly.
Pair Corralation between Gol Intelligent and Globe Trade
If you would invest 42.00 in Gol Intelligent Airlines on November 28, 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. Globe Trade Centre
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Globe Trade Centre |
Gol Intelligent and Globe Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Globe Trade
The main advantage of trading using opposite Gol Intelligent and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.| Gol Intelligent vs. DICKS Sporting Goods | Gol Intelligent vs. Algonquin Power Utilities | Gol Intelligent vs. UNIVMUSIC GRPADR050 | Gol Intelligent vs. GEAR4MUSIC LS 10 |
| Globe Trade vs. Sims Metal Management | Globe Trade vs. Jupiter Fund Management | Globe Trade vs. Prosiebensat 1 Media | Globe Trade vs. SALESFORCE INC CDR |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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