Correlation Between Alambic Small and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both Alambic 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 Alambic 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 Alambic Small Cap and Goldman Sachs Small, you can compare the effects of market volatilities on Alambic 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 Alambic Small with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alambic Small and Goldman Sachs.

Diversification Opportunities for Alambic Small and Goldman Sachs

0.0

Correlation Coefficient

Alambic Small  Goldman Sachs

Pay attention - limited upside

The 3 months correlation between Alambic and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alambic Small Cap 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 Alambic 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 Alambic 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 Small has no effect on the direction of Alambic Small i.e., Alambic Small and Goldman Sachs go up and down completely randomly.

Pair Corralation between Alambic Small and Goldman Sachs

If you would invest  1,758  in Goldman Sachs Small on February 1, 2024 and sell it today you would earn a total of  305.00  from holding Goldman Sachs Small or generate 17.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Alambic Small Cap  vs.  Goldman Sachs Small

Alambic Small Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alambic Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Alambic Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 fundamental 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 Alambic Small and Goldman Sachs

The main advantage of trading using opposite Alambic Small and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alambic 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 Alambic Small Cap 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.