Correlation Between Goldman Sachs and Robo Global

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Robo Global 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 Robo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goldman Sachs Future and Robo Global Robotics, you can compare the effects of market volatilities on Goldman Sachs and Robo Global 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 Robo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Robo Global.

Diversification Opportunities for Goldman Sachs and Robo Global

-0.54

Correlation Coefficient

Goldman Sachs  Robo Global

Excellent diversification

The 3 months correlation between Goldman and Robo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and Robo Global Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Robotics 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 Future are associated (or correlated) with Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Robotics has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Robo Global go up and down completely randomly.

Pair Corralation between Goldman Sachs and Robo Global

Given the investment horizon of 90 days Goldman Sachs Future is expected to generate 0.77 times more return on investment than Robo Global. However, Goldman Sachs Future is 1.3 times less risky than Robo Global. It trades about 0.03 of its potential returns per unit of risk. Robo Global Robotics is currently generating about 0.0 per unit of risk. If you would invest  3,304  in Goldman Sachs Future on September 12, 2024 and sell it today you would earn a total of  223.00  from holding Goldman Sachs Future or generate 6.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Goldman Sachs Future  vs.  Robo Global Robotics

Goldman Sachs Future

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Future has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Goldman Sachs is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Robo Global Robotics

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Robo Global Robotics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental drivers, Robo Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Goldman Sachs and Robo Global

The main advantage of trading using opposite Goldman Sachs and Robo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Robo Global 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 Robo Global will offset losses from the drop in Robo Global's long position.

The idea behind Goldman Sachs Future and Robo Global Robotics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..