Correlation Between Goldman Sachs and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and SCOR PK 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 SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs International and SCOR PK, you can compare the effects of market volatilities on Goldman Sachs and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and SCOR PK.
Diversification Opportunities for Goldman Sachs and SCOR PK
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and SCOR is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 International are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and SCOR PK go up and down completely randomly.
Pair Corralation between Goldman Sachs and SCOR PK
Assuming the 90 days horizon Goldman Sachs is expected to generate 6.46 times less return on investment than SCOR PK. But when comparing it to its historical volatility, Goldman Sachs International is 5.59 times less risky than SCOR PK. It trades about 0.28 of its potential returns per unit of risk. SCOR PK is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 214.00 in SCOR PK on September 13, 2024 and sell it today you would earn a total of 42.00 from holding SCOR PK or generate 19.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs International vs. SCOR PK
Performance |
| Timeline |
| Goldman Sachs Intern |
| SCOR PK |
Goldman Sachs and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and SCOR PK
The main advantage of trading using opposite Goldman Sachs and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Goldman Sachs vs. Alliancebernstein National Municipal | Goldman Sachs vs. Pace High Yield | Goldman Sachs vs. Bbh Intermediate Municipal | Goldman Sachs vs. Morningstar Defensive Bond |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |