Correlation Between Embassy Bancorp and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Embassy Bancorp and Goldman Sachs 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 Embassy Bancorp and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Embassy Bancorp and Goldman Sachs Group, you can compare the effects of market volatilities on Embassy Bancorp and Goldman Sachs 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 Embassy Bancorp with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Bancorp and Goldman Sachs.
Diversification Opportunities for Embassy Bancorp and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Embassy and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Bancorp and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group and Embassy Bancorp 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 Embassy Bancorp are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Group has no effect on the direction of Embassy Bancorp i.e., Embassy Bancorp and Goldman Sachs go up and down completely randomly.
Pair Corralation between Embassy Bancorp and Goldman Sachs
If you would invest 37,608 in Goldman Sachs Group on February 13, 2024 and sell it today you would earn a total of 7,865 from holding Goldman Sachs Group or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Embassy Bancorp vs. Goldman Sachs Group
Performance |
| Timeline |
| Embassy Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goldman Sachs Group |
Embassy Bancorp and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Bancorp and Goldman Sachs
The main advantage of trading using opposite Embassy Bancorp and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Bancorp position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Embassy Bancorp vs. Pioneer Bankcorp | Embassy Bancorp vs. Liberty Northwest Bancorp | Embassy Bancorp vs. First Community | Embassy Bancorp vs. Coeur dAlene Bancorp |
| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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