Correlation Between Goldman Sachs and Sit Government
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Sit Government 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 Sit Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Dynamic and Sit Government Securities, you can compare the effects of market volatilities on Goldman Sachs and Sit Government 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 Sit Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Sit Government.
Diversification Opportunities for Goldman Sachs and Sit Government
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Sit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Dynamic and Sit Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit Government Securities 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 Sit Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit Government Securities has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Sit Government go up and down completely randomly.
Pair Corralation between Goldman Sachs and Sit Government
Assuming the 90 days horizon Goldman Sachs Dynamic is expected to generate 3.36 times more return on investment than Sit Government. However, Goldman Sachs is 3.36 times more volatile than Sit Government Securities. It trades about 0.2 of its potential returns per unit of risk. Sit Government Securities is currently generating about -0.15 per unit of risk. If you would invest 2,169 in Goldman Sachs Dynamic on September 18, 2024 and sell it today you would earn a total of 198.00 from holding Goldman Sachs Dynamic or generate 9.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Dynamic vs. Sit Government Securities
Performance |
Timeline |
Goldman Sachs Dynamic |
Sit Government Securities |
Goldman Sachs and Sit Government Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Sit Government
The main advantage of trading using opposite Goldman Sachs and Sit Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Sit Government 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 Sit Government will offset losses from the drop in Sit Government's long position.Goldman Sachs vs. Ab Value Fund | Goldman Sachs vs. Acm Dynamic Opportunity | Goldman Sachs vs. Qs Large Cap | Goldman Sachs vs. Abr 7525 Volatility |
Sit Government vs. Sit Small Cap | Sit Government vs. Sit Global Dividend | Sit Government vs. Sit Global Dividend | Sit Government vs. Sit Small Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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