Correlation Between CleanSpark and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both CleanSpark 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 CleanSpark and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CleanSpark and Goldman Sachs Group, you can compare the effects of market volatilities on CleanSpark 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 CleanSpark with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of CleanSpark and Goldman Sachs.
Diversification Opportunities for CleanSpark and Goldman Sachs
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CleanSpark and Goldman is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CleanSpark and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group and CleanSpark 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 CleanSpark 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 Group has no effect on the direction of CleanSpark i.e., CleanSpark and Goldman Sachs go up and down completely randomly.
Pair Corralation between CleanSpark and Goldman Sachs
Given the investment horizon of 90 days CleanSpark is expected to generate 1.21 times less return on investment than Goldman Sachs. In addition to that, CleanSpark is 3.07 times more volatile than Goldman Sachs Group. It trades about 0.07 of its total potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.25 per unit of volatility. If you would invest 58,279 in Goldman Sachs Group on October 25, 2024 and sell it today you would earn a total of 4,994 from holding Goldman Sachs Group or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CleanSpark vs. Goldman Sachs Group
Performance |
| Timeline |
| CleanSpark |
| Goldman Sachs Group |
CleanSpark and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CleanSpark and Goldman Sachs
The main advantage of trading using opposite CleanSpark and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CleanSpark 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.| CleanSpark vs. Hut 8 Corp | CleanSpark vs. HIVE Blockchain Technologies | CleanSpark vs. Bit Digital | CleanSpark vs. Terawulf |
| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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