Correlation Between GraniteShares and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both GraniteShares 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 GraniteShares and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares 3x Short and Goldman Sachs ActiveBeta, you can compare the effects of market volatilities on GraniteShares 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 GraniteShares with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares and Goldman Sachs.
Diversification Opportunities for GraniteShares and Goldman Sachs
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GraniteShares and Goldman is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares 3x Short and Goldman Sachs ActiveBeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ActiveBeta and GraniteShares 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 GraniteShares 3x Short 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 ActiveBeta has no effect on the direction of GraniteShares i.e., GraniteShares and Goldman Sachs go up and down completely randomly.
Pair Corralation between GraniteShares and Goldman Sachs
Assuming the 90 days trading horizon GraniteShares 3x Short is expected to under-perform the Goldman Sachs. In addition to that, GraniteShares is 12.77 times more volatile than Goldman Sachs ActiveBeta. It trades about -0.09 of its total potential returns per unit of risk. Goldman Sachs ActiveBeta is currently generating about 0.24 per unit of volatility. If you would invest 2,787 in Goldman Sachs ActiveBeta on November 28, 2024 and sell it today you would earn a total of 123.00 from holding Goldman Sachs ActiveBeta or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares 3x Short vs. Goldman Sachs ActiveBeta
Performance |
| Timeline |
| GraniteShares 3x Short |
| Goldman Sachs ActiveBeta |
GraniteShares and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares and Goldman Sachs
The main advantage of trading using opposite GraniteShares and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares 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.| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Short |
| Goldman Sachs vs. WisdomTree NASDAQ 100 | Goldman Sachs vs. WisdomTree Silver 3x | Goldman Sachs vs. WisdomTree SP 500 | Goldman Sachs vs. Invesco Technology SP |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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