Correlation Between Gol Intelligent and Take-Two Interactive
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Take-Two Interactive 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 Take-Two Interactive 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 Take Two Interactive Software, you can compare the effects of market volatilities on Gol Intelligent and Take-Two Interactive 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 Take-Two Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Take-Two Interactive.
Diversification Opportunities for Gol Intelligent and Take-Two Interactive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Take-Two is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take-Two Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Take-Two Interactive go up and down completely randomly.
Pair Corralation between Gol Intelligent and Take-Two Interactive
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Take-Two Interactive. In addition to that, Gol Intelligent is 4.11 times more volatile than Take Two Interactive Software. It trades about -0.01 of its total potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.08 per unit of volatility. If you would invest 9,727 in Take Two Interactive Software on October 13, 2024 and sell it today you would earn a total of 8,177 from holding Take Two Interactive Software or generate 84.06% 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. Take Two Interactive Software
Performance |
Timeline |
Gol Intelligent Airlines |
Take Two Interactive |
Gol Intelligent and Take-Two Interactive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gol Intelligent and Take-Two Interactive
The main advantage of trading using opposite Gol Intelligent and Take-Two Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Take-Two Interactive 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 Take-Two Interactive will offset losses from the drop in Take-Two Interactive's long position.Gol Intelligent vs. DATATEC LTD 2 | Gol Intelligent vs. Alliance Data Systems | Gol Intelligent vs. Teradata Corp | Gol Intelligent vs. Unity Software |
Take-Two Interactive vs. JAPAN AIRLINES | Take-Two Interactive vs. ETFS Coffee ETC | Take-Two Interactive vs. China Eastern Airlines | Take-Two Interactive vs. Gol Intelligent Airlines |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |