Correlation Between Amark Preci and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Amark Preci 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 Amark Preci and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amark Preci and Goldman Sachs Group, you can compare the effects of market volatilities on Amark Preci 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 Amark Preci with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amark Preci and Goldman Sachs.
Diversification Opportunities for Amark Preci and Goldman Sachs
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amark and Goldman is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amark Preci 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 Amark Preci 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 Amark Preci 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 Amark Preci i.e., Amark Preci and Goldman Sachs go up and down completely randomly.
Pair Corralation between Amark Preci and Goldman Sachs
Given the investment horizon of 90 days Amark Preci is expected to generate 2.65 times more return on investment than Goldman Sachs. However, Amark Preci is 2.65 times more volatile than Goldman Sachs Group. It trades about 0.18 of its potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.15 per unit of risk. If you would invest 2,686 in Amark Preci on January 26, 2024 and sell it today you would earn a total of 1,136 from holding Amark Preci or generate 42.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Amark Preci vs. Goldman Sachs Group
Performance |
Timeline |
Amark Preci |
Goldman Sachs Group |
Amark Preci and Goldman Sachs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amark Preci and Goldman Sachs
The main advantage of trading using opposite Amark Preci and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amark Preci 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.Amark Preci vs. PJT Partners | Amark Preci vs. Scully Royalty | Amark Preci vs. Piper Sandler Companies | Amark Preci vs. Evercore Partners |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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