Correlation Between Gol Intelligent and Southwest Airlines
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Southwest Airlines 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 Southwest Airlines 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 Southwest Airlines Co, you can compare the effects of market volatilities on Gol Intelligent and Southwest Airlines 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 Southwest Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Southwest Airlines.
Diversification Opportunities for Gol Intelligent and Southwest Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Southwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Southwest Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southwest Airlines 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 Southwest Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southwest Airlines has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Southwest Airlines go up and down completely randomly.
Pair Corralation between Gol Intelligent and Southwest Airlines
If you would invest 2,724 in Southwest Airlines Co on August 29, 2024 and sell it today you would earn a total of 355.00 from holding Southwest Airlines Co or generate 13.03% 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. Southwest Airlines Co
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Southwest Airlines |
Gol Intelligent and Southwest Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Southwest Airlines
The main advantage of trading using opposite Gol Intelligent and Southwest Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Southwest Airlines 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 Southwest Airlines will offset losses from the drop in Southwest Airlines' long position.| Gol Intelligent vs. Ultra Clean Holdings | Gol Intelligent vs. UNIVMUSIC GRPADR050 | Gol Intelligent vs. Lamar Advertising | Gol Intelligent vs. MCEWEN MINING INC |
| Southwest Airlines vs. VIVA WINE GROUP | Southwest Airlines vs. GRIFFIN MINING LTD | Southwest Airlines vs. RYU Apparel | Southwest Airlines vs. NAKED WINES PLC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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