Correlation Between THRACE PLASTICS and Gol Intelligent
Can any of the company-specific risk be diversified away by investing in both THRACE PLASTICS 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 THRACE PLASTICS and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THRACE PLASTICS and Gol Intelligent Airlines, you can compare the effects of market volatilities on THRACE PLASTICS 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 THRACE PLASTICS with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of THRACE PLASTICS and Gol Intelligent.
Diversification Opportunities for THRACE PLASTICS and Gol Intelligent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between THRACE and Gol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS 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 THRACE PLASTICS i.e., THRACE PLASTICS and Gol Intelligent go up and down completely randomly.
Pair Corralation between THRACE PLASTICS and Gol Intelligent
Assuming the 90 days trading horizon THRACE PLASTICS is expected to generate 0.21 times more return on investment than Gol Intelligent. However, THRACE PLASTICS is 4.74 times less risky than Gol Intelligent. It trades about 0.02 of its potential returns per unit of risk. Gol Intelligent Airlines is currently generating about -0.01 per unit of risk. If you would invest 386.00 in THRACE PLASTICS on October 17, 2024 and sell it today you would earn a total of 31.00 from holding THRACE PLASTICS or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
THRACE PLASTICS vs. Gol Intelligent Airlines
Performance |
| Timeline |
| THRACE PLASTICS |
| Gol Intelligent Airlines |
THRACE PLASTICS and Gol Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THRACE PLASTICS and Gol Intelligent
The main advantage of trading using opposite THRACE PLASTICS and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THRACE PLASTICS 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.| THRACE PLASTICS vs. Carnegie Clean Energy | THRACE PLASTICS vs. Ribbon Communications | THRACE PLASTICS vs. BW OFFSHORE LTD | THRACE PLASTICS vs. PT Wintermar Offshore |
| Gol Intelligent vs. GOODYEAR T RUBBER | Gol Intelligent vs. THRACE PLASTICS | Gol Intelligent vs. MCEWEN MINING INC | Gol Intelligent vs. Zijin Mining Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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