Correlation Between HIVE Blockchain and Goldman Sachs

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

By analyzing existing cross correlation between HIVE Blockchain Technologies and The Goldman Sachs, you can compare the effects of market volatilities on HIVE Blockchain 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 HIVE Blockchain with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Goldman Sachs.

Diversification Opportunities for HIVE Blockchain and Goldman Sachs

0.66

Correlation Coefficient

HIVE Blockchain  Goldman Sachs

Poor diversification

The 3 months correlation between HIVE and Goldman is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs and HIVE Blockchain 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 HIVE Blockchain Technologies 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 has no effect on the direction of HIVE Blockchain i.e., HIVE Blockchain and Goldman Sachs go up and down completely randomly.

Pair Corralation between HIVE Blockchain and Goldman Sachs

Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to generate 7.66 times more return on investment than Goldman Sachs. However, HIVE Blockchain is 7.66 times more volatile than The Goldman Sachs. It trades about 0.13 of its potential returns per unit of risk. The Goldman Sachs is currently generating about 0.12 per unit of risk. If you would invest  281.00  in HIVE Blockchain Technologies on August 31, 2024 and sell it today you would earn a total of  123.00  from holding HIVE Blockchain Technologies or generate 43.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

HIVE Blockchain Technologies  vs.  The Goldman Sachs

HIVE Blockchain Tech

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in HIVE Blockchain Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, HIVE Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Goldman Sachs are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Goldman Sachs is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HIVE Blockchain and Goldman Sachs

The main advantage of trading using opposite HIVE Blockchain and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain 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 HIVE Blockchain Technologies and The Goldman Sachs 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.