Correlation Between Gol Intelligent and Qantas Airways
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Qantas Airways 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 Qantas Airways 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 Qantas Airways Limited, you can compare the effects of market volatilities on Gol Intelligent and Qantas Airways 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 Qantas Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Qantas Airways.
Diversification Opportunities for Gol Intelligent and Qantas Airways
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Qantas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Qantas Airways Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qantas Airways 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 Qantas Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qantas Airways has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Qantas Airways go up and down completely randomly.
Pair Corralation between Gol Intelligent and Qantas Airways
If you would invest 493.00 in Qantas Airways Limited on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Qantas Airways Limited or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Qantas Airways Limited
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Qantas Airways |
Gol Intelligent and Qantas Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Qantas Airways
The main advantage of trading using opposite Gol Intelligent and Qantas Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Qantas Airways 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 Qantas Airways will offset losses from the drop in Qantas Airways' long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Qantas Airways vs. EPSILON HEALTHCARE LTD | Qantas Airways vs. Diamondrock Hospitality Co | Qantas Airways vs. MagnaChip Semiconductor Corp | Qantas Airways vs. ATRYS HEALTH SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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