Correlation Between Goldman Sachs and YUNFENG FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and YUNFENG FINANCIAL 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 YUNFENG FINANCIAL 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 YUNFENG FINANCIAL GRP, you can compare the effects of market volatilities on Goldman Sachs and YUNFENG FINANCIAL 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 YUNFENG FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and YUNFENG FINANCIAL.
Diversification Opportunities for Goldman Sachs and YUNFENG FINANCIAL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and YUNFENG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and YUNFENG FINANCIAL GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YUNFENG FINANCIAL GRP 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 YUNFENG FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YUNFENG FINANCIAL GRP has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and YUNFENG FINANCIAL go up and down completely randomly.
Pair Corralation between Goldman Sachs and YUNFENG FINANCIAL
Assuming the 90 days horizon The Goldman Sachs is expected to generate 0.85 times more return on investment than YUNFENG FINANCIAL. However, The Goldman Sachs is 1.18 times less risky than YUNFENG FINANCIAL. It trades about 0.23 of its potential returns per unit of risk. YUNFENG FINANCIAL GRP is currently generating about -0.15 per unit of risk. If you would invest 55,080 in The Goldman Sachs on October 24, 2024 and sell it today you would earn a total of 4,770 from holding The Goldman Sachs or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Goldman Sachs vs. YUNFENG FINANCIAL GRP
Performance |
| Timeline |
| Goldman Sachs |
| YUNFENG FINANCIAL GRP |
Goldman Sachs and YUNFENG FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and YUNFENG FINANCIAL
The main advantage of trading using opposite Goldman Sachs and YUNFENG FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, YUNFENG FINANCIAL 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 YUNFENG FINANCIAL will offset losses from the drop in YUNFENG FINANCIAL's long position.| Goldman Sachs vs. Forsys Metals Corp | Goldman Sachs vs. Calibre Mining Corp | Goldman Sachs vs. FIREWEED METALS P | Goldman Sachs vs. betterU Education Corp |
| YUNFENG FINANCIAL vs. Grand Canyon Education | YUNFENG FINANCIAL vs. STRAYER EDUCATION | YUNFENG FINANCIAL vs. Playa Hotels Resorts | YUNFENG FINANCIAL vs. CAREER EDUCATION |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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