Correlation Between Goldman Sachs and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goldman Sachs Clean and Goldman Sachs Small, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Goldman Sachs.

Diversification Opportunities for Goldman Sachs and Goldman Sachs

0.53

Correlation Coefficient

Goldman Sachs  Goldman Sachs

Very weak diversification

The 3 months correlation between Goldman and Goldman is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Clean and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small and Goldman Sachs 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 Goldman Sachs Clean 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 Small has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Goldman Sachs go up and down completely randomly.

Pair Corralation between Goldman Sachs and Goldman Sachs

Assuming the 90 days horizon Goldman Sachs Clean is expected to under-perform the Goldman Sachs. In addition to that, Goldman Sachs is 1.18 times more volatile than Goldman Sachs Small. It trades about -0.16 of its total potential returns per unit of risk. Goldman Sachs Small is currently generating about -0.15 per unit of volatility. If you would invest  4,623  in Goldman Sachs Small on March 16, 2024 and sell it today you would lose (144.00) from holding Goldman Sachs Small or give up 3.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Goldman Sachs Clean  vs.  Goldman Sachs Small

Goldman Sachs Clean

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Clean are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental drivers, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Goldman Sachs Small

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Small are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Goldman Sachs is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Goldman Sachs and Goldman Sachs

The main advantage of trading using opposite Goldman Sachs and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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 Goldman Sachs Clean and Goldman Sachs Small 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.