Two Equities Correlation Analysis
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GDEUX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Goldman Sachs and NYSE Composite
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and NYSE is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Dynamic and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 Dynamic are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and NYSE Composite go up and down completely randomly.
Pair Corralation between Goldman Sachs and NYSE Composite
Assuming the 90 days horizon Goldman Sachs Dynamic is expected to under-perform the NYSE Composite. In addition to that, Goldman Sachs is 1.21 times more volatile than NYSE Composite. It trades about -0.28 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.27 per unit of volatility. If you would invest 1,813,008 in NYSE Composite on January 20, 2024 and sell it today you would lose (67,131) from holding NYSE Composite or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Dynamic vs. NYSE Composite
Performance |
| Timeline |
Goldman Sachs and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Goldman Sachs Dynamic
Pair trading matchups for Goldman Sachs
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Goldman Sachs and NYSE Composite
The main advantage of trading using opposite Goldman Sachs and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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