Correlation Between Grupo Carso and Gol Intelligent

Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and Gol Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grupo Carso SAB and Gol Intelligent Airlines, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of Gol Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Gol Intelligent.

Diversification Opportunities for Grupo Carso and Gol Intelligent

0.0

Correlation Coefficient

Grupo Carso  Gol Intelligent

Pay attention - limited upside

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

Pair Corralation between Grupo Carso and Gol Intelligent

Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.43 times more return on investment than Gol Intelligent. However, Grupo Carso SAB is 2.3 times less risky than Gol Intelligent. It trades about 0.07 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  227.00  in Grupo Carso SAB on October 5, 2024 and sell it today you would earn a total of  293.00  from holding Grupo Carso SAB or generate 129.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Grupo Carso SAB  vs.  Gol Intelligent Airlines

Grupo Carso SAB

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Grupo Carso SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Gol Intelligent Airlines

Risk-Adjusted Performance

0 of 100

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Grupo Carso and Gol Intelligent

The main advantage of trading using opposite Grupo Carso and Gol Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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 Grupo Carso SAB 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..