Correlation Between Gol Intelligent and ALGOMA STEEL
Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and ALGOMA STEEL 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 Gol Intelligent and ALGOMA STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gol Intelligent Airlines and ALGOMA STEEL GROUP, you can compare the effects of market volatilities on Gol Intelligent and ALGOMA STEEL 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 Gol Intelligent with a short position of ALGOMA STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and ALGOMA STEEL.
Diversification Opportunities for Gol Intelligent and ALGOMA STEEL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and ALGOMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and ALGOMA STEEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALGOMA STEEL GROUP and Gol Intelligent 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 Gol Intelligent Airlines are associated (or correlated) with ALGOMA STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALGOMA STEEL GROUP has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and ALGOMA STEEL go up and down completely randomly.
Pair Corralation between Gol Intelligent and ALGOMA STEEL
If you would invest 648.00 in ALGOMA STEEL GROUP on September 19, 2024 and sell it today you would earn a total of 262.00 from holding ALGOMA STEEL GROUP or generate 40.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gol Intelligent Airlines vs. ALGOMA STEEL GROUP
Performance |
Timeline |
Gol Intelligent Airlines |
ALGOMA STEEL GROUP |
Gol Intelligent and ALGOMA STEEL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gol Intelligent and ALGOMA STEEL
The main advantage of trading using opposite Gol Intelligent and ALGOMA STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, ALGOMA STEEL 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 ALGOMA STEEL will offset losses from the drop in ALGOMA STEEL's long position.Gol Intelligent vs. Tradegate AG Wertpapierhandelsbank | Gol Intelligent vs. UNITED RENTALS | Gol Intelligent vs. TRADEGATE | Gol Intelligent vs. FAST RETAIL ADR |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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