Correlation Between Gol Intelligent and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT, you can compare the effects of market volatilities on Gol Intelligent and OFFICE DEPOT 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 OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and OFFICE DEPOT.
Diversification Opportunities for Gol Intelligent and OFFICE DEPOT
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Gol and OFFICE is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT 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 OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between Gol Intelligent and OFFICE DEPOT
If you would invest 1,920 in OFFICE DEPOT on September 4, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. OFFICE DEPOT
Performance |
| Timeline |
| Gol Intelligent Airlines |
| OFFICE DEPOT |
Gol Intelligent and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and OFFICE DEPOT
The main advantage of trading using opposite Gol Intelligent and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, OFFICE DEPOT 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 OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| OFFICE DEPOT vs. TOTAL GABON | OFFICE DEPOT vs. Walgreens Boots Alliance | OFFICE DEPOT vs. Peak Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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