Correlation Between Gol Intelligent and Tokyu Construction
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Tokyu Construction 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 Tokyu Construction 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 Tokyu Construction Co, you can compare the effects of market volatilities on Gol Intelligent and Tokyu Construction 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 Tokyu Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Tokyu Construction.
Diversification Opportunities for Gol Intelligent and Tokyu Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Tokyu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Tokyu Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokyu Construction 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 Tokyu Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokyu Construction has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Tokyu Construction go up and down completely randomly.
Pair Corralation between Gol Intelligent and Tokyu Construction
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Tokyu Construction. In addition to that, Gol Intelligent is 5.47 times more volatile than Tokyu Construction Co. It trades about -0.01 of its total potential returns per unit of risk. Tokyu Construction Co is currently generating about 0.0 per unit of volatility. If you would invest 448.00 in Tokyu Construction Co on October 29, 2024 and sell it today you would lose (22.00) from holding Tokyu Construction Co or give up 4.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. Tokyu Construction Co
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Tokyu Construction |
Gol Intelligent and Tokyu Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Tokyu Construction
The main advantage of trading using opposite Gol Intelligent and Tokyu Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Tokyu Construction 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 Tokyu Construction will offset losses from the drop in Tokyu Construction's long position.| Gol Intelligent vs. CANON MARKETING JP | Gol Intelligent vs. Carsales | Gol Intelligent vs. Salesforce | Gol Intelligent vs. Fast Retailing Co |
| Tokyu Construction vs. Jacquet Metal Service | Tokyu Construction vs. GREENX METALS LTD | Tokyu Construction vs. NH HOTEL GROUP | Tokyu Construction vs. Ringmetall SE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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