Correlation Between DAX Index and Goldman Sachs
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By analyzing existing cross correlation between DAX Index and The Goldman Sachs, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Goldman Sachs.
Diversification Opportunities for DAX Index and Goldman Sachs
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Goldman is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Goldman Sachs go up and down completely randomly.
Pair Corralation between DAX Index and Goldman Sachs
Assuming the 90 days trading horizon DAX Index is expected to generate 2.69 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, DAX Index is 2.3 times less risky than Goldman Sachs. It trades about 0.13 of its potential returns per unit of risk. The Goldman Sachs is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 29,312 in The Goldman Sachs on September 1, 2024 and sell it today you would earn a total of 28,618 from holding The Goldman Sachs or generate 97.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. The Goldman Sachs
Performance |
| Timeline |
DAX Index and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
The Goldman Sachs
Pair trading matchups for Goldman Sachs
Pair Trading with DAX Index and Goldman Sachs
The main advantage of trading using opposite DAX Index and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Goldman Sachs vs. H FARM SPA | Goldman Sachs vs. United Insurance Holdings | Goldman Sachs vs. HANOVER INSURANCE | Goldman Sachs vs. Selective Insurance Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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