Correlation Between Gol Linhas and Alaska Air

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Gol Linhas and Alaska Air 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 Linhas and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gol Linhas Aereas and Alaska Air Group, you can compare the effects of market volatilities on Gol Linhas and Alaska Air 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 Linhas with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Linhas and Alaska Air.

Diversification Opportunities for Gol Linhas and Alaska Air

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Gol and Alaska is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gol Linhas Aereas and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and Gol Linhas 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 Linhas Aereas are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Gol Linhas i.e., Gol Linhas and Alaska Air go up and down completely randomly.

Pair Corralation between Gol Linhas and Alaska Air

If you would invest  3,808  in Alaska Air Group on December 30, 2023 and sell it today you would earn a total of  491.00  from holding Alaska Air Group or generate 12.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy4.55%
ValuesDaily Returns

Gol Linhas Aereas  vs.  Alaska Air Group

 Performance 
       Timeline  
Gol Linhas Aereas 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Gol Linhas Aereas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Alaska Air Group 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Alaska Air Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady essential indicators, Alaska Air disclosed solid returns over the last few months and may actually be approaching a breakup point.

Gol Linhas and Alaska Air Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gol Linhas and Alaska Air

The main advantage of trading using opposite Gol Linhas and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Linhas position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.
The idea behind Gol Linhas Aereas and Alaska Air Group 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.
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Stocks Directory
Find actively traded stocks across global markets
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
AI Investment Finder
Use AI to screen and filter profitable investment opportunities