Correlation Between MGIC INVESTMENT and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT and Gol Intelligent 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 MGIC INVESTMENT and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and Gol Intelligent Airlines, you can compare the effects of market volatilities on MGIC INVESTMENT and Gol Intelligent 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 MGIC INVESTMENT with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and Gol Intelligent.
Diversification Opportunities for MGIC INVESTMENT and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGIC and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and Gol Intelligent Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gol Intelligent Airlines and MGIC INVESTMENT 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 MGIC INVESTMENT are associated (or correlated) with Gol Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gol Intelligent Airlines has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and Gol Intelligent go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and Gol Intelligent
If you would invest 42.00 in Gol Intelligent Airlines on September 22, 2024 and sell it today you would earn a total of 0.00 from holding Gol Intelligent Airlines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGIC INVESTMENT vs. Gol Intelligent Airlines
Performance |
| Timeline |
| MGIC INVESTMENT |
| Gol Intelligent Airlines |
MGIC INVESTMENT and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGIC INVESTMENT and Gol Intelligent
The main advantage of trading using opposite MGIC INVESTMENT and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT position performs unexpectedly, Gol Intelligent 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 Gol Intelligent will offset losses from the drop in Gol Intelligent's long position.| MGIC INVESTMENT vs. Highlight Communications AG | MGIC INVESTMENT vs. Verizon Communications | MGIC INVESTMENT vs. Air Lease | MGIC INVESTMENT vs. China Communications Services |
| Gol Intelligent vs. MGIC INVESTMENT | Gol Intelligent vs. PennyMac Mortgage Investment | Gol Intelligent vs. DIVERSIFIED ROYALTY | Gol Intelligent vs. TITANIUM TRANSPORTGROUP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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