Correlation Between Goldman Sachs and Haitong Securities
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Haitong Securities 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 Haitong Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Goldman Sachs and Haitong Securities Co, you can compare the effects of market volatilities on Goldman Sachs and Haitong Securities 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 Haitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Haitong Securities.
Diversification Opportunities for Goldman Sachs and Haitong Securities
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Haitong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and Haitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitong Securities 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 The Goldman Sachs are associated (or correlated) with Haitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitong Securities has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Haitong Securities go up and down completely randomly.
Pair Corralation between Goldman Sachs and Haitong Securities
Assuming the 90 days horizon Goldman Sachs is expected to generate 3.75 times less return on investment than Haitong Securities. But when comparing it to its historical volatility, The Goldman Sachs is 3.73 times less risky than Haitong Securities. It trades about 0.12 of its potential returns per unit of risk. Haitong Securities Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Haitong Securities Co on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Haitong Securities Co or generate 159.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Goldman Sachs vs. Haitong Securities Co
Performance |
| Timeline |
| Goldman Sachs |
| Haitong Securities |
Goldman Sachs and Haitong Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Haitong Securities
The main advantage of trading using opposite Goldman Sachs and Haitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Haitong Securities 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 Haitong Securities will offset losses from the drop in Haitong Securities' long position.| Goldman Sachs vs. Waste Management | Goldman Sachs vs. EPSILON HEALTHCARE LTD | Goldman Sachs vs. Ares Management Corp | Goldman Sachs vs. CEOTRONICS |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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