Correlation Between Goldman Sachs and Cref Money
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Goldman Sachs and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Cref Money.
Diversification Opportunities for Goldman Sachs and Cref Money
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Cref is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Cref Money go up and down completely randomly.
Pair Corralation between Goldman Sachs and Cref Money
Assuming the 90 days horizon Goldman Sachs International is expected to under-perform the Cref Money. In addition to that, Goldman Sachs is 43.81 times more volatile than Cref Money Market. It trades about -0.09 of its total potential returns per unit of risk. Cref Money Market is currently generating about 0.96 per unit of volatility. If you would invest 2,934 in Cref Money Market on August 26, 2024 and sell it today you would earn a total of 35.00 from holding Cref Money Market or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs International vs. Cref Money Market
Performance |
| Timeline |
| Goldman Sachs Intern |
| Cref Money Market |
Goldman Sachs and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Cref Money
The main advantage of trading using opposite Goldman Sachs and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Goldman Sachs vs. Cref Money Market | Goldman Sachs vs. Massmutual Premier Funds | Goldman Sachs vs. Plan Investment | Goldman Sachs vs. T Rowe Price |
| Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |