Correlation Between Sit Small and Goldman Sachs

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Can any of the company-specific risk be diversified away by investing in both Sit Small 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 Sit Small and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Small Cap and Goldman Sachs Growth, you can compare the effects of market volatilities on Sit Small 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 Sit Small with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Small and Goldman Sachs.

Diversification Opportunities for Sit Small and Goldman Sachs

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sit and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIT SMALL CAP and GOLDMAN SACHS GROWTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Growth and Sit Small 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 Sit Small Cap 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 Growth has no effect on the direction of Sit Small i.e., Sit Small and Goldman Sachs go up and down completely randomly.

Pair Corralation between Sit Small and Goldman Sachs

If you would invest (100.00) in Goldman Sachs Growth on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Goldman Sachs Growth or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SIT SMALL CAP  vs.  GOLDMAN SACHS GROWTH

 Performance 
       Timeline  
Sit Small Cap 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Good
Over the last 90 days Sit Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Sit Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Goldman Sachs Growth 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Growth are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Sit Small and Goldman Sachs Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sit Small and Goldman Sachs

The main advantage of trading using opposite Sit Small and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Small 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.
The idea behind Sit Small Cap and Goldman Sachs Growth 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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