Correlation Between SINGAPORE AIRLINES and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both SINGAPORE 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 SINGAPORE 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 SINGAPORE AIRLINES and Gol Intelligent Airlines, you can compare the effects of market volatilities on SINGAPORE 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 SINGAPORE AIRLINES with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of SINGAPORE AIRLINES and Gol Intelligent.
Diversification Opportunities for SINGAPORE AIRLINES and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SINGAPORE and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SINGAPORE AIRLINES 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 SINGAPORE 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES i.e., SINGAPORE AIRLINES and Gol Intelligent go up and down completely randomly.
Pair Corralation between SINGAPORE AIRLINES and Gol Intelligent
If you would invest 415.00 in SINGAPORE AIRLINES on September 2, 2024 and sell it today you would earn a total of 25.00 from holding SINGAPORE AIRLINES or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
SINGAPORE AIRLINES vs. Gol Intelligent Airlines
Performance |
| Timeline |
| SINGAPORE AIRLINES |
| Gol Intelligent Airlines |
SINGAPORE AIRLINES and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SINGAPORE AIRLINES and Gol Intelligent
The main advantage of trading using opposite SINGAPORE AIRLINES and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SINGAPORE 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.| SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB | SINGAPORE AIRLINES vs. Darden Restaurants | SINGAPORE AIRLINES vs. Reliance Steel Aluminum | SINGAPORE AIRLINES vs. Q2M Managementberatung AG |
| Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc | Gol Intelligent vs. Apple Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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