Correlation Between Goldman Sachs and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Xtrackers Harvest 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 Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Future and Xtrackers Harvest CSI, you can compare the effects of market volatilities on Goldman Sachs and Xtrackers Harvest 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 Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Xtrackers Harvest.
Diversification Opportunities for Goldman Sachs and Xtrackers Harvest
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Xtrackers is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and Xtrackers Harvest CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI 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 Goldman Sachs Future are associated (or correlated) with Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between Goldman Sachs and Xtrackers Harvest
Given the investment horizon of 90 days Goldman Sachs is expected to generate 1.54 times less return on investment than Xtrackers Harvest. But when comparing it to its historical volatility, Goldman Sachs Future is 2.37 times less risky than Xtrackers Harvest. It trades about 0.06 of its potential returns per unit of risk. Xtrackers Harvest CSI is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,364 in Xtrackers Harvest CSI on September 4, 2024 and sell it today you would earn a total of 356.00 from holding Xtrackers Harvest CSI or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Future vs. Xtrackers Harvest CSI
Performance |
| Timeline |
| Goldman Sachs Future |
| Xtrackers Harvest CSI |
Goldman Sachs and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Xtrackers Harvest
The main advantage of trading using opposite Goldman Sachs and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.| Goldman Sachs vs. Goldman Sachs ETF | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future |
| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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