Correlation Between TRADEGATE and Gol Intelligent

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Can any of the company-specific risk be diversified away by investing in both TRADEGATE 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 TRADEGATE and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEGATE and Gol Intelligent Airlines, you can compare the effects of market volatilities on TRADEGATE 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 TRADEGATE with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEGATE and Gol Intelligent.

Diversification Opportunities for TRADEGATE and Gol Intelligent

TRADEGATEGolDiversified AwayTRADEGATEGolDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between TRADEGATE and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRADEGATE 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 TRADEGATE 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 TRADEGATE 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 TRADEGATE i.e., TRADEGATE and Gol Intelligent go up and down completely randomly.

Pair Corralation between TRADEGATE 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.23%
ValuesDaily Returns

TRADEGATE  vs.  Gol Intelligent Airlines

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -0.6-0.4-0.20.00.20.40.6
JavaScript chart by amCharts 3.21.15T2G GOQN
       Timeline  
TRADEGATE 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days TRADEGATE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, TRADEGATE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec8888.58989.59090.5
Gol Intelligent Airlines 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Gol Intelligent Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gol Intelligent is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.420.425

TRADEGATE and Gol Intelligent Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.79-0.55-0.31-0.0929-0.01030.07220.250.490.730.97 123456
JavaScript chart by amCharts 3.21.15T2G GOQN
       Returns  

Pair Trading with TRADEGATE and Gol Intelligent

The main advantage of trading using opposite TRADEGATE and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEGATE 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.
The idea behind TRADEGATE and Gol Intelligent Airlines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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