Correlation Between Goldman Sachs and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Glg Intl 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 Goldman Sachs and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Financial and Glg Intl Small, you can compare the effects of market volatilities on Goldman Sachs and Glg Intl 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 Goldman Sachs with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Glg Intl.
Diversification Opportunities for Goldman Sachs and Glg Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Glg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Goldman Sachs 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 Goldman Sachs Financial are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Glg Intl go up and down completely randomly.
Pair Corralation between Goldman Sachs and Glg Intl
If you would invest 8,294 in Glg Intl Small on September 25, 2024 and sell it today you would earn a total of 191.00 from holding Glg Intl Small or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Glg Intl Small
Performance |
| Timeline |
| Goldman Sachs Financial |
| Glg Intl Small |
Goldman Sachs and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Glg Intl
The main advantage of trading using opposite Goldman Sachs and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Goldman Sachs vs. Siit High Yield | Goldman Sachs vs. Jpmorgan High Yield | Goldman Sachs vs. Strategic Advisers Income | Goldman Sachs vs. Guggenheim High Yield |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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