Correlation Between Goldman Sachs and Six Circles
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Six Circles 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 Six Circles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs High and Six Circles Ultra, you can compare the effects of market volatilities on Goldman Sachs and Six Circles 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 Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Six Circles.
Diversification Opportunities for Goldman Sachs and Six Circles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Six is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs High and Six Circles Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles Ultra 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 High are associated (or correlated) with Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles Ultra has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Six Circles go up and down completely randomly.
Pair Corralation between Goldman Sachs and Six Circles
Assuming the 90 days horizon Goldman Sachs High is expected to generate 5.9 times more return on investment than Six Circles. However, Goldman Sachs is 5.9 times more volatile than Six Circles Ultra. It trades about 0.09 of its potential returns per unit of risk. Six Circles Ultra is currently generating about 0.47 per unit of risk. If you would invest 477.00 in Goldman Sachs High on January 10, 2025 and sell it today you would earn a total of 63.00 from holding Goldman Sachs High or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs High vs. Six Circles Ultra
Performance |
| Timeline |
| Goldman Sachs High |
| Six Circles Ultra |
Goldman Sachs and Six Circles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Six Circles
The main advantage of trading using opposite Goldman Sachs and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| Six Circles vs. Short Real Estate | Six Circles vs. Nomura Real Estate | Six Circles vs. Forum Real Estate | Six Circles vs. Cohen Steers Real |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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