Correlation Between Gol Intelligent and UmweltBank
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and UmweltBank 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 UmweltBank 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 UmweltBank AG, you can compare the effects of market volatilities on Gol Intelligent and UmweltBank 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 UmweltBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and UmweltBank.
Diversification Opportunities for Gol Intelligent and UmweltBank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and UmweltBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and UmweltBank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UmweltBank AG 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 UmweltBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UmweltBank AG has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and UmweltBank go up and down completely randomly.
Pair Corralation between Gol Intelligent and UmweltBank
Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the UmweltBank. In addition to that, Gol Intelligent is 3.7 times more volatile than UmweltBank AG. It trades about -0.02 of its total potential returns per unit of risk. UmweltBank AG is currently generating about -0.02 per unit of volatility. If you would invest 772.00 in UmweltBank AG on October 27, 2024 and sell it today you would lose (168.00) from holding UmweltBank AG or give up 21.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gol Intelligent Airlines vs. UmweltBank AG
Performance |
| Timeline |
| Gol Intelligent Airlines |
| UmweltBank AG |
Gol Intelligent and UmweltBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and UmweltBank
The main advantage of trading using opposite Gol Intelligent and UmweltBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, UmweltBank 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 UmweltBank will offset losses from the drop in UmweltBank's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| UmweltBank vs. BioNTech SE | UmweltBank vs. RELIANCE STEEL AL | UmweltBank vs. Firan Technology Group | UmweltBank vs. Minerals Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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