Correlation Between Goldman Sachs and Conestoga Micro
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Conestoga Micro 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 Conestoga Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Clean and Conestoga Micro Cap, you can compare the effects of market volatilities on Goldman Sachs and Conestoga Micro 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 Conestoga Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Conestoga Micro.
Diversification Opportunities for Goldman Sachs and Conestoga Micro
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Conestoga is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Clean and Conestoga Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conestoga Micro Cap 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 Clean are associated (or correlated) with Conestoga Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conestoga Micro Cap has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Conestoga Micro go up and down completely randomly.
Pair Corralation between Goldman Sachs and Conestoga Micro
Assuming the 90 days horizon Goldman Sachs Clean is expected to under-perform the Conestoga Micro. But the mutual fund apears to be less risky and, when comparing its historical volatility, Goldman Sachs Clean is 1.67 times less risky than Conestoga Micro. The mutual fund trades about -0.15 of its potential returns per unit of risk. The Conestoga Micro Cap is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Conestoga Micro Cap on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Conestoga Micro Cap or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goldman Sachs Clean vs. Conestoga Micro Cap
Performance |
| Timeline |
| Goldman Sachs Clean |
| Conestoga Micro Cap |
Goldman Sachs and Conestoga Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Conestoga Micro
The main advantage of trading using opposite Goldman Sachs and Conestoga Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Conestoga Micro 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 Conestoga Micro will offset losses from the drop in Conestoga Micro's long position.| Goldman Sachs vs. Leggmason Partners Institutional | Goldman Sachs vs. Falcon Focus Scv | Goldman Sachs vs. Abr 7525 Volatility | Goldman Sachs vs. Scharf Global Opportunity |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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