Correlation Between Credit Acceptance and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance 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 Credit Acceptance and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and The Goldman Sachs, you can compare the effects of market volatilities on Credit Acceptance 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 Credit Acceptance with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Goldman Sachs.
Diversification Opportunities for Credit Acceptance and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs and Credit Acceptance 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 Credit Acceptance 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 Credit Acceptance i.e., Credit Acceptance and Goldman Sachs go up and down completely randomly.
Pair Corralation between Credit Acceptance and Goldman Sachs
If you would invest 9,033 in The Goldman Sachs on December 4, 2024 and sell it today you would earn a total of 2,986 from holding The Goldman Sachs or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. The Goldman Sachs
Performance |
| Timeline |
| Credit Acceptance |
| Goldman Sachs |
Credit Acceptance and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Goldman Sachs
The main advantage of trading using opposite Credit Acceptance and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance 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.| Credit Acceptance vs. Zoom Video Communications | Credit Acceptance vs. ZoomInfo Technologies | Credit Acceptance vs. Micron Technology | Credit Acceptance vs. CRISPR Therapeutics AG |
| Goldman Sachs vs. Uber Technologies | Goldman Sachs vs. Check Point Software | Goldman Sachs vs. Electronic Arts | Goldman Sachs vs. Keysight Technologies, |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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