Correlation Between Guinness Atkinson and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Guinness Atkinson 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 Guinness Atkinson and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guinness Atkinson Alternative and Goldman Sachs Mid, you can compare the effects of market volatilities on Guinness Atkinson 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 Guinness Atkinson with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guinness Atkinson and Goldman Sachs.
Diversification Opportunities for Guinness Atkinson and Goldman Sachs
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guinness and Goldman is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guinness Atkinson Alternative and Goldman Sachs Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Mid and Guinness Atkinson 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 Guinness Atkinson Alternative 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 Mid has no effect on the direction of Guinness Atkinson i.e., Guinness Atkinson and Goldman Sachs go up and down completely randomly.
Pair Corralation between Guinness Atkinson and Goldman Sachs
Assuming the 90 days horizon Guinness Atkinson Alternative is expected to generate 1.47 times more return on investment than Goldman Sachs. However, Guinness Atkinson is 1.47 times more volatile than Goldman Sachs Mid. It trades about 0.0 of its potential returns per unit of risk. Goldman Sachs Mid is currently generating about -0.2 per unit of risk. If you would invest 505.00 in Guinness Atkinson Alternative on November 28, 2024 and sell it today you would lose (1.00) from holding Guinness Atkinson Alternative or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guinness Atkinson Alternative vs. Goldman Sachs Mid
Performance |
| Timeline |
| Guinness Atkinson |
| Goldman Sachs Mid |
Guinness Atkinson and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guinness Atkinson and Goldman Sachs
The main advantage of trading using opposite Guinness Atkinson and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guinness Atkinson 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.| Guinness Atkinson vs. New Alternatives Fund | Guinness Atkinson vs. Calvert Global Energy | Guinness Atkinson vs. Firsthand Alternative Energy | Guinness Atkinson vs. Guinness Atkinson Global |
| Goldman Sachs vs. Massmutual Premier Diversified | Goldman Sachs vs. Manning Napier Diversified | Goldman Sachs vs. Tiaa Cref Lifestyle Conservative | Goldman Sachs vs. Diversified Bond Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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