Correlation Between Goldman Sachs and WBI BullBear
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and WBI BullBear 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 WBI BullBear 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 WBI BullBear Quality, you can compare the effects of market volatilities on Goldman Sachs and WBI BullBear 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 WBI BullBear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and WBI BullBear.
Diversification Opportunities for Goldman Sachs and WBI BullBear
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and WBI is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and WBI BullBear Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WBI BullBear Quality 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 WBI BullBear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WBI BullBear Quality has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and WBI BullBear go up and down completely randomly.
Pair Corralation between Goldman Sachs and WBI BullBear
Given the investment horizon of 90 days Goldman Sachs Future is expected to under-perform the WBI BullBear. In addition to that, Goldman Sachs is 1.12 times more volatile than WBI BullBear Quality. It trades about -0.07 of its total potential returns per unit of risk. WBI BullBear Quality is currently generating about 0.27 per unit of volatility. If you would invest 3,414 in WBI BullBear Quality on August 30, 2024 and sell it today you would earn a total of 277.00 from holding WBI BullBear Quality or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Future vs. WBI BullBear Quality
Performance |
| Timeline |
| Goldman Sachs Future |
| WBI BullBear Quality |
Goldman Sachs and WBI BullBear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and WBI BullBear
The main advantage of trading using opposite Goldman Sachs and WBI BullBear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, WBI BullBear 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 WBI BullBear will offset losses from the drop in WBI BullBear's long position.| Goldman Sachs vs. Global X FinTech | Goldman Sachs vs. iShares Genomics Immunology | Goldman Sachs vs. ABIVAX Socit Anonyme | Goldman Sachs vs. HUMANA INC |
| WBI BullBear vs. Cabana Target Drawdown | WBI BullBear vs. Amplify High Income | WBI BullBear vs. Cabana Target Drawdown | WBI BullBear vs. Adaptive Alpha Opportunities |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| 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 | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |