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
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gol and Alaska is -0.77. 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 3,968 in Alaska Air Group on January 25, 2024 and sell it today you would earn a total of 455.00 from holding Alaska Air Group or generate 11.47% 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
Weak | Strong |
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. Azul SA | Gol Linhas vs. Air France KLM | Gol Linhas vs. Copa Holdings SA | Gol Linhas vs. International Consolidated Airlines |
| Alaska Air vs. Delta Air Lines | Alaska Air vs. United Airlines Holdings | Alaska Air vs. American Airlines Group | Alaska Air vs. JetBlue Airways Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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