Correlation Between Gol Intelligent and AT S

Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and AT S 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 AT S 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 AT S Austria, you can compare the effects of market volatilities on Gol Intelligent and AT S 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 AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and AT S.

Diversification Opportunities for Gol Intelligent and AT S

0.0

Correlation Coefficient

Gol Intelligent  AT S

Pay attention - limited upside

The 3 months correlation between Gol and AUS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria 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 AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and AT S go up and down completely randomly.

Pair Corralation between Gol Intelligent and AT S

Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to generate 2.56 times more return on investment than AT S. However, Gol Intelligent is 2.56 times more volatile than AT S Austria. It trades about -0.01 of its potential returns per unit of risk. AT S Austria is currently generating about -0.06 per unit of risk. If you would invest  292.00  in Gol Intelligent Airlines on October 4, 2024 and sell it today you would lose (250.00) from holding Gol Intelligent Airlines or give up 85.62% of portfolio value over 90 days.

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

Gol Intelligent Airlines  vs.  AT S Austria

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.

AT S Austria

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AT S Austria has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile 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.

Pair Trading with Gol Intelligent and AT S

The main advantage of trading using opposite Gol Intelligent and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.

The idea behind Gol Intelligent Airlines and AT S Austria 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.