Correlation Between Goldman Sachs and Flaherty
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Flaherty 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 Flaherty 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 Flaherty and Crumrine, you can compare the effects of market volatilities on Goldman Sachs and Flaherty 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 Flaherty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Flaherty.
Diversification Opportunities for Goldman Sachs and Flaherty
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Flaherty is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and Flaherty and Crumrine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flaherty and Crumrine 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 Flaherty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flaherty and Crumrine has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Flaherty go up and down completely randomly.
Pair Corralation between Goldman Sachs and Flaherty
Given the investment horizon of 90 days Goldman Sachs Future is expected to under-perform the Flaherty. In addition to that, Goldman Sachs is 1.37 times more volatile than Flaherty and Crumrine. It trades about -0.03 of its total potential returns per unit of risk. Flaherty and Crumrine is currently generating about 0.03 per unit of volatility. If you would invest 2,020 in Flaherty and Crumrine on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Flaherty and Crumrine or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Future vs. Flaherty and Crumrine
Performance |
| Timeline |
| Goldman Sachs Future |
| Flaherty and Crumrine |
Goldman Sachs and Flaherty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Flaherty
The main advantage of trading using opposite Goldman Sachs and Flaherty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Flaherty 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 Flaherty will offset losses from the drop in Flaherty's long position.| Goldman Sachs vs. SPDR Kensho New | Goldman Sachs vs. Global X FinTech | Goldman Sachs vs. iShares Genomics Immunology | Goldman Sachs vs. Aquagold International |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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