Correlation Between Gol Intelligent and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Quaker Chemical 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 Quaker Chemical 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 Quaker Chemical, you can compare the effects of market volatilities on Gol Intelligent and Quaker Chemical 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 Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Quaker Chemical.
Diversification Opportunities for Gol Intelligent and Quaker Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Quaker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical 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 Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Quaker Chemical go up and down completely randomly.
Pair Corralation between Gol Intelligent and Quaker Chemical
If you would invest 42.00 in Gol Intelligent Airlines on September 23, 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 | 95.45% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Quaker Chemical
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Quaker Chemical |
Gol Intelligent and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Quaker Chemical
The main advantage of trading using opposite Gol Intelligent and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| Gol Intelligent vs. INTERSHOP Communications Aktiengesellschaft | Gol Intelligent vs. Warner Music Group | Gol Intelligent vs. Cogent Communications Holdings | Gol Intelligent vs. Southwest Airlines Co |
| Quaker Chemical vs. JAPAN AIRLINES | Quaker Chemical vs. Gol Intelligent Airlines | Quaker Chemical vs. Perseus Mining Limited | Quaker Chemical vs. GALENA MINING LTD |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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