Correlation Between Bayview Acquisition and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition 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 Bayview Acquisition and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayview Acquisition Corp and Goldman Sachs Short, you can compare the effects of market volatilities on Bayview Acquisition 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 Bayview Acquisition with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and Goldman Sachs.
Diversification Opportunities for Bayview Acquisition and Goldman Sachs
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayview and GOLDMAN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short and Bayview Acquisition 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 Bayview Acquisition Corp 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 Short has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and Goldman Sachs go up and down completely randomly.
Pair Corralation between Bayview Acquisition and Goldman Sachs
Assuming the 90 days horizon Bayview Acquisition Corp is expected to generate 4.44 times more return on investment than Goldman Sachs. However, Bayview Acquisition is 4.44 times more volatile than Goldman Sachs Short. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Short is currently generating about 0.03 per unit of risk. If you would invest 1,052 in Bayview Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Bayview Acquisition Corp or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. Goldman Sachs Short
Performance |
| Timeline |
| Bayview Acquisition Corp |
| Goldman Sachs Short |
Bayview Acquisition and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and Goldman Sachs
The main advantage of trading using opposite Bayview Acquisition and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition 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.| Bayview Acquisition vs. Nasdaq Inc | Bayview Acquisition vs. Broadstone Net Lease | Bayview Acquisition vs. Kite Realty Group | Bayview Acquisition vs. Playtika Holding Corp |
| Goldman Sachs vs. SPACE | Goldman Sachs vs. Bayview Acquisition Corp | Goldman Sachs vs. Ampleforth | Goldman Sachs vs. ionet |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |