Correlation Between Southwest Airlines and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both Southwest 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 Southwest 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 Southwest Airlines Co and Gol Intelligent Airlines, you can compare the effects of market volatilities on Southwest 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 Southwest Airlines with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Airlines and Gol Intelligent.
Diversification Opportunities for Southwest Airlines and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southwest and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Airlines Co 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 Southwest 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 Southwest Airlines Co 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 Southwest Airlines i.e., Southwest Airlines and Gol Intelligent go up and down completely randomly.
Pair Corralation between Southwest Airlines and Gol Intelligent
If you would invest 2,724 in Southwest Airlines Co on August 29, 2024 and sell it today you would earn a total of 355.00 from holding Southwest Airlines Co or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southwest Airlines Co vs. Gol Intelligent Airlines
Performance |
| Timeline |
| Southwest Airlines |
| Gol Intelligent Airlines |
Southwest Airlines and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Airlines and Gol Intelligent
The main advantage of trading using opposite Southwest Airlines and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest 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.| Southwest Airlines vs. VIVA WINE GROUP | Southwest Airlines vs. GRIFFIN MINING LTD | Southwest Airlines vs. RYU Apparel | Southwest Airlines vs. NAKED WINES PLC |
| Gol Intelligent vs. Ultra Clean Holdings | Gol Intelligent vs. UNIVMUSIC GRPADR050 | Gol Intelligent vs. Lamar Advertising | Gol Intelligent vs. MCEWEN MINING 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |