Correlation Between Goldman Sachs and FlatexDEGIRO
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and FlatexDEGIRO 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 FlatexDEGIRO 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 flatexDEGIRO AG, you can compare the effects of market volatilities on Goldman Sachs and FlatexDEGIRO 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 FlatexDEGIRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and FlatexDEGIRO.
Diversification Opportunities for Goldman Sachs and FlatexDEGIRO
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and FlatexDEGIRO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and flatexDEGIRO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flatexDEGIRO AG 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 FlatexDEGIRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flatexDEGIRO AG has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and FlatexDEGIRO go up and down completely randomly.
Pair Corralation between Goldman Sachs and FlatexDEGIRO
Assuming the 90 days horizon The Goldman Sachs is expected to under-perform the FlatexDEGIRO. But the stock apears to be less risky and, when comparing its historical volatility, The Goldman Sachs is 1.15 times less risky than FlatexDEGIRO. The stock trades about -0.1 of its potential returns per unit of risk. The flatexDEGIRO AG is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,553 in flatexDEGIRO AG on October 13, 2024 and sell it today you would lose (29.00) from holding flatexDEGIRO AG or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Goldman Sachs vs. flatexDEGIRO AG
Performance |
| Timeline |
| Goldman Sachs |
| flatexDEGIRO AG |
Goldman Sachs and FlatexDEGIRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and FlatexDEGIRO
The main advantage of trading using opposite Goldman Sachs and FlatexDEGIRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, FlatexDEGIRO 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 FlatexDEGIRO will offset losses from the drop in FlatexDEGIRO's long position.| Goldman Sachs vs. Yuexiu Transport Infrastructure | Goldman Sachs vs. DICKS Sporting Goods | Goldman Sachs vs. SPORT LISBOA E | Goldman Sachs vs. Lamar Advertising |
| FlatexDEGIRO vs. Austevoll Seafood ASA | FlatexDEGIRO vs. Nomad Foods | FlatexDEGIRO vs. Salesforce | FlatexDEGIRO vs. PLANT VEDA FOODS |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |