Correlation Between Goldman Sachs and Identiv
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on Goldman Sachs and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Identiv.
Diversification Opportunities for Goldman Sachs and Identiv
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Identiv is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Identiv go up and down completely randomly.
Pair Corralation between Goldman Sachs and Identiv
Assuming the 90 days trading horizon The Goldman Sachs is expected to generate 0.41 times more return on investment than Identiv. However, The Goldman Sachs is 2.44 times less risky than Identiv. It trades about 0.07 of its potential returns per unit of risk. Identiv is currently generating about -0.01 per unit of risk. If you would invest 33,661 in The Goldman Sachs on September 3, 2024 and sell it today you would earn a total of 24,269 from holding The Goldman Sachs or generate 72.1% 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. Identiv
Performance |
| Timeline |
| Goldman Sachs |
| Identiv |
Goldman Sachs and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Identiv
The main advantage of trading using opposite Goldman Sachs and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| Goldman Sachs vs. Fevertree Drinks PLC | Goldman Sachs vs. Seven West Media | Goldman Sachs vs. MOLSON RS BEVERAGE | Goldman Sachs vs. Ubisoft Entertainment SA |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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