Correlation Between Cogent Communications and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Cogent Communications 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 Cogent Communications and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and Gol Intelligent Airlines, you can compare the effects of market volatilities on Cogent Communications 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 Cogent Communications with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and Gol Intelligent.
Diversification Opportunities for Cogent Communications and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cogent and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings 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 Cogent Communications 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 Cogent Communications Holdings 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 Cogent Communications i.e., Cogent Communications and Gol Intelligent go up and down completely randomly.
Pair Corralation between Cogent Communications 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 | 97.73% |
| Values | Daily Returns |
Cogent Communications Holdings vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Cogent Communications |
| Gol Intelligent Airlines |
Cogent Communications and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and Gol Intelligent
The main advantage of trading using opposite Cogent Communications and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications 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.| Cogent Communications vs. T Mobile | Cogent Communications vs. China Mobile Limited | Cogent Communications vs. Verizon Communications | Cogent Communications vs. ATT Inc |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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