Correlation Between Gol Intelligent and Public Storage
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on Gol Intelligent and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Public Storage.
Diversification Opportunities for Gol Intelligent and Public Storage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Public Storage go up and down completely randomly.
Pair Corralation between Gol Intelligent and Public Storage
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Public Storage. In addition to that, Gol Intelligent is 4.95 times more volatile than Public Storage. It trades about 0.0 of its total potential returns per unit of risk. Public Storage is currently generating about 0.04 per unit of volatility. If you would invest 26,512 in Public Storage on September 3, 2024 and sell it today you would earn a total of 6,808 from holding Public Storage or generate 25.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Public Storage
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Public Storage |
Gol Intelligent and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Public Storage
The main advantage of trading using opposite Gol Intelligent and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Public Storage vs. SBA Communications Corp | Public Storage vs. INTERSHOP Communications Aktiengesellschaft | Public Storage vs. Cass Information Systems | Public Storage vs. Citic Telecom International |
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 CEOs Directory module to screen CEOs from public companies around the world.
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