Correlation Between Nok Airlines and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Nok Airlines 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 Nok Airlines and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nok Airlines PCL and Gol Intelligent Airlines, you can compare the effects of market volatilities on Nok Airlines 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 Nok Airlines with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Gol Intelligent.
Diversification Opportunities for Nok Airlines and Gol Intelligent
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Gol is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL 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 Nok Airlines 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 Nok Airlines PCL 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 Nok Airlines i.e., Nok Airlines and Gol Intelligent go up and down completely randomly.
Pair Corralation between Nok Airlines and Gol Intelligent
If you would invest 42.00 in Gol Intelligent Airlines on August 27, 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 | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Nok Airlines PCL |
| Gol Intelligent Airlines |
Nok Airlines and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Gol Intelligent
The main advantage of trading using opposite Nok Airlines and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines 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.| Nok Airlines vs. SOLSTAD OFFSHORE NK | Nok Airlines vs. TIANDE CHEMICAL | Nok Airlines vs. KINGBOARD CHEMICAL | Nok Airlines vs. Solstad Offshore ASA |
| Gol Intelligent vs. Jupiter Fund Management | Gol Intelligent vs. Public Storage | Gol Intelligent vs. AGF Management Limited | Gol Intelligent vs. Fidelity National Information |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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