Correlation Between Gol Intelligent and Walmart
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on Gol Intelligent and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Walmart.
Diversification Opportunities for Gol Intelligent and Walmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Walmart go up and down completely randomly.
Pair Corralation between Gol Intelligent and Walmart
If you would invest 8,488 in Walmart on September 25, 2024 and sell it today you would earn a total of 93.00 from holding Walmart or generate 1.1% 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. Walmart
Performance |
| Timeline |
| Gol Intelligent Airlines |
| Walmart |
Gol Intelligent and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gol Intelligent and Walmart
The main advantage of trading using opposite Gol Intelligent and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
| Walmart vs. AEGEAN AIRLINES | Walmart vs. Evolution Mining Limited | Walmart vs. Gol Intelligent Airlines | Walmart vs. JAPAN 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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