Correlation Between Goldman Sachs and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and CEWE Stiftung 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 CEWE Stiftung 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 CEWE Stiftung Co, you can compare the effects of market volatilities on Goldman Sachs and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and CEWE Stiftung.
Diversification Opportunities for Goldman Sachs and CEWE Stiftung
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and CEWE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Goldman Sachs and CEWE Stiftung
Assuming the 90 days trading horizon The Goldman Sachs is expected to generate 0.69 times more return on investment than CEWE Stiftung. However, The Goldman Sachs is 1.45 times less risky than CEWE Stiftung. It trades about 0.03 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.03 per unit of risk. If you would invest 55,969 in The Goldman Sachs on September 12, 2024 and sell it today you would earn a total of 361.00 from holding The Goldman Sachs or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Goldman Sachs vs. CEWE Stiftung Co
Performance |
| Timeline |
| Goldman Sachs |
| CEWE Stiftung |
Goldman Sachs and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and CEWE Stiftung
The main advantage of trading using opposite Goldman Sachs and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Goldman Sachs vs. SMA Solar Technology | Goldman Sachs vs. Axcelis Technologies | Goldman Sachs vs. GLG LIFE TECH | Goldman Sachs vs. NetSol Technologies |
| CEWE Stiftung vs. MTI WIRELESS EDGE | CEWE Stiftung vs. Darden Restaurants | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft | CEWE Stiftung vs. BJs Restaurants |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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