Correlation Between Gol Intelligent and PNC Financial
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and PNC Financial 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 PNC Financial 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 PNC Financial, you can compare the effects of market volatilities on Gol Intelligent and PNC Financial 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 PNC Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and PNC Financial.
Diversification Opportunities for Gol Intelligent and PNC Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and PNC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and The PNC Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Financial 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 PNC Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Financial has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and PNC Financial go up and down completely randomly.
Pair Corralation between Gol Intelligent and PNC Financial
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the PNC Financial. In addition to that, Gol Intelligent is 4.32 times more volatile than The PNC Financial. It trades about -0.01 of its total potential returns per unit of risk. The PNC Financial is currently generating about 0.07 per unit of volatility. If you would invest 11,126 in The PNC Financial on November 30, 2024 and sell it today you would earn a total of 6,874 from holding The PNC Financial or generate 61.78% 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. The PNC Financial
Performance |
| Timeline |
| Gol Intelligent Airlines |
| PNC Financial |
Gol Intelligent and PNC Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and PNC Financial
The main advantage of trading using opposite Gol Intelligent and PNC Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, PNC Financial 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 PNC Financial will offset losses from the drop in PNC Financial's long position.| Gol Intelligent vs. American Airlines Group | Gol Intelligent vs. SINGAPORE AIRLINES | Gol Intelligent vs. China BlueChemical | Gol Intelligent vs. Siamgas And Petrochemicals |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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