Correlation Between Goldman Sachs and CHIE
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and CHIE 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 CHIE 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 CHIE, you can compare the effects of market volatilities on Goldman Sachs and CHIE 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 CHIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and CHIE.
Diversification Opportunities for Goldman Sachs and CHIE
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and CHIE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and CHIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIE 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 CHIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIE has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and CHIE go up and down completely randomly.
Pair Corralation between Goldman Sachs and CHIE
Given the investment horizon of 90 days Goldman Sachs is expected to generate 3.89 times less return on investment than CHIE. In addition to that, Goldman Sachs is 1.02 times more volatile than CHIE. It trades about 0.03 of its total potential returns per unit of risk. CHIE is currently generating about 0.1 per unit of volatility. If you would invest 1,475 in CHIE on September 12, 2024 and sell it today you would earn a total of 5.00 from holding CHIE or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.14% |
| Values | Daily Returns |
Goldman Sachs Future vs. CHIE
Performance |
| Timeline |
| Goldman Sachs Future |
| CHIE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and CHIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and CHIE
The main advantage of trading using opposite Goldman Sachs and CHIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, CHIE 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 CHIE will offset losses from the drop in CHIE'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 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |