Correlation Between Gol Linhas and Alaska Air
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Gol Linhas Aereas vs. Alaska Air Group
Performance |
Timeline |
Gol Linhas Aereas |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Alaska Air Group |
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.Gol Linhas vs. Jacobs Solutions | Gol Linhas vs. Sphere Entertainment Co | Gol Linhas vs. Radcom | Gol Linhas vs. Highway Holdings Limited |
Alaska Air vs. KLA Tencor | Alaska Air vs. CAVA Group | Alaska Air vs. Kura Sushi USA | Alaska Air vs. Tower Semiconductor |
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.
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