Correlation Between Gol Intelligent and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Flutter Entertainment 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 Flutter Entertainment 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 Flutter Entertainment PLC, you can compare the effects of market volatilities on Gol Intelligent and Flutter Entertainment 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 Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Flutter Entertainment.
Diversification Opportunities for Gol Intelligent and Flutter Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Flutter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC 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 Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Gol Intelligent and Flutter Entertainment
If you would invest 42.00 in Gol Intelligent Airlines on October 30, 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. Flutter Entertainment PLC
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Flutter Entertainment PLC |
Gol Intelligent and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Flutter Entertainment
The main advantage of trading using opposite Gol Intelligent and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Flutter Entertainment vs. GigaMedia | Flutter Entertainment vs. GAMING FAC SA | Flutter Entertainment vs. Media and Games | Flutter Entertainment vs. PLAYMATES TOYS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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