Correlation Between Goldman Sachs and FIRST REP
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and FIRST REP 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 FIRST REP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and FIRST REP BK, you can compare the effects of market volatilities on Goldman Sachs and FIRST REP 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 FIRST REP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and FIRST REP.
Diversification Opportunities for Goldman Sachs and FIRST REP
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and FIRST is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and FIRST REP BK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST REP BK 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 Group are associated (or correlated) with FIRST REP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST REP BK has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and FIRST REP go up and down completely randomly.
Pair Corralation between Goldman Sachs and FIRST REP
If you would invest 40,494 in Goldman Sachs Group on January 25, 2024 and sell it today you would earn a total of 1,810 from holding Goldman Sachs Group or generate 4.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Goldman Sachs Group vs. FIRST REP BK
Performance |
Timeline |
Goldman Sachs Group |
FIRST REP BK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and FIRST REP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and FIRST REP
The main advantage of trading using opposite Goldman Sachs and FIRST REP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, FIRST REP 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 FIRST REP will offset losses from the drop in FIRST REP's long position.Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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