Correlation Between Goldman Sachs and EON SE
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and EON SE 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 EON SE 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 EON SE, you can compare the effects of market volatilities on Goldman Sachs and EON SE 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 EON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and EON SE.
Diversification Opportunities for Goldman Sachs and EON SE
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and EON is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and EON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EON SE 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 EON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EON SE has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and EON SE go up and down completely randomly.
Pair Corralation between Goldman Sachs and EON SE
Assuming the 90 days trading horizon The Goldman Sachs is expected to generate 0.8 times more return on investment than EON SE. However, The Goldman Sachs is 1.24 times less risky than EON SE. It trades about 0.08 of its potential returns per unit of risk. EON SE is currently generating about 0.05 per unit of risk. If you would invest 32,385 in The Goldman Sachs on September 4, 2024 and sell it today you would earn a total of 25,365 from holding The Goldman Sachs or generate 78.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Goldman Sachs vs. EON SE
Performance |
| Timeline |
| Goldman Sachs |
| EON SE |
Goldman Sachs and EON SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and EON SE
The main advantage of trading using opposite Goldman Sachs and EON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, EON SE 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 EON SE will offset losses from the drop in EON SE's long position.| Goldman Sachs vs. GOODYEAR T RUBBER | Goldman Sachs vs. CPU SOFTWAREHOUSE | Goldman Sachs vs. NEWELL RUBBERMAID | Goldman Sachs vs. Constellation Software |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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