Correlation Between Nike and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Nike 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 Nike and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and Gol Intelligent Airlines, you can compare the effects of market volatilities on Nike 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 Nike with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and Gol Intelligent.
Diversification Opportunities for Nike and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nike and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc 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 Nike 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 Nike Inc 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 Nike i.e., Nike and Gol Intelligent go up and down completely randomly.
Pair Corralation between Nike and Gol Intelligent
If you would invest 42.00 in Gol Intelligent Airlines on September 23, 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 | 95.45% |
| Values | Daily Returns |
Nike Inc vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Nike Inc |
| Gol Intelligent Airlines |
Nike and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nike and Gol Intelligent
The main advantage of trading using opposite Nike and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike 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.| Nike vs. Gol Intelligent Airlines | Nike vs. Chunghwa Telecom Co | Nike vs. Ribbon Communications | Nike vs. Entravision Communications |
| Gol Intelligent vs. INTERSHOP Communications Aktiengesellschaft | Gol Intelligent vs. Warner Music Group | Gol Intelligent vs. Cogent Communications Holdings | Gol Intelligent vs. Southwest Airlines Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |