Correlation Between Bitcoin Services and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Bitcoin Services 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 Bitcoin Services and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Services and Goldman Sachs Group, you can compare the effects of market volatilities on Bitcoin Services 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 Bitcoin Services with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Services and Goldman Sachs.
Diversification Opportunities for Bitcoin Services and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bitcoin and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Services 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 Bitcoin Services 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 Bitcoin Services 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 Bitcoin Services i.e., Bitcoin Services and Goldman Sachs go up and down completely randomly.
Pair Corralation between Bitcoin Services and Goldman Sachs
If you would invest 37,513 in Goldman Sachs Group on January 26, 2024 and sell it today you would earn a total of 4,791 from holding Goldman Sachs Group or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bitcoin Services vs. Goldman Sachs Group
Performance |
| Timeline |
| Bitcoin Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goldman Sachs Group |
Bitcoin Services and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Services and Goldman Sachs
The main advantage of trading using opposite Bitcoin Services and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Services 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.| Bitcoin Services vs. US Silica Holdings | Bitcoin Services vs. Eldorado Gold Corp | Bitcoin Services vs. Chester Mining | Bitcoin Services vs. SFL Corporation |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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