Correlation Between Goldman Sachs and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Kopernik Global 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 Kopernik Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Emerging and Kopernik Global All Cap, you can compare the effects of market volatilities on Goldman Sachs and Kopernik Global 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 Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Kopernik Global.
Diversification Opportunities for Goldman Sachs and Kopernik Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Kopernik is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Emerging and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All 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 Emerging are associated (or correlated) with Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Kopernik Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Kopernik Global
Assuming the 90 days horizon Goldman Sachs Emerging is expected to under-perform the Kopernik Global. In addition to that, Goldman Sachs is 1.18 times more volatile than Kopernik Global All Cap. It trades about -0.18 of its total potential returns per unit of risk. Kopernik Global All Cap is currently generating about -0.15 per unit of volatility. If you would invest 1,262 in Kopernik Global All Cap on September 3, 2024 and sell it today you would lose (29.00) from holding Kopernik Global All Cap or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Emerging vs. Kopernik Global All Cap
Performance |
| Timeline |
| Goldman Sachs Emerging |
| Kopernik Global All |
Goldman Sachs and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Kopernik Global
The main advantage of trading using opposite Goldman Sachs and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Goldman Sachs vs. Massmutual Select Diversified | Goldman Sachs vs. Evaluator Conservative Rms | Goldman Sachs vs. Prudential Core Conservative | Goldman Sachs vs. Jhancock Diversified Macro |
| Kopernik Global vs. Msift High Yield | Kopernik Global vs. Goldman Sachs High | Kopernik Global vs. Virtus High Yield | Kopernik Global vs. Fidelity Capital Income |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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