Correlation Between GOLDMAN SACHS and Alithya Group
Can any of the company-specific risk be diversified away by investing in both GOLDMAN SACHS and Alithya Group 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 Alithya Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOLDMAN SACHS CDR and Alithya Group inc, you can compare the effects of market volatilities on GOLDMAN SACHS and Alithya Group 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 Alithya Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN SACHS and Alithya Group.
Diversification Opportunities for GOLDMAN SACHS and Alithya Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GOLDMAN and Alithya is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CDR and Alithya Group inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group inc 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 CDR are associated (or correlated) with Alithya Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group inc has no effect on the direction of GOLDMAN SACHS i.e., GOLDMAN SACHS and Alithya Group go up and down completely randomly.
Pair Corralation between GOLDMAN SACHS and Alithya Group
Assuming the 90 days trading horizon GOLDMAN SACHS CDR is expected to generate 1.03 times more return on investment than Alithya Group. However, GOLDMAN SACHS is 1.03 times more volatile than Alithya Group inc. It trades about 0.24 of its potential returns per unit of risk. Alithya Group inc is currently generating about -0.06 per unit of risk. If you would invest 2,428 in GOLDMAN SACHS CDR on September 3, 2024 and sell it today you would earn a total of 623.00 from holding GOLDMAN SACHS CDR or generate 25.66% 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 CDR vs. Alithya Group inc
Performance |
| Timeline |
| GOLDMAN SACHS CDR |
| Alithya Group inc |
GOLDMAN SACHS and Alithya Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN SACHS and Alithya Group
The main advantage of trading using opposite GOLDMAN SACHS and Alithya Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN SACHS position performs unexpectedly, Alithya Group 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 Alithya Group will offset losses from the drop in Alithya Group's long position.| GOLDMAN SACHS vs. MAG Silver Corp | GOLDMAN SACHS vs. Electra Battery Materials | GOLDMAN SACHS vs. Marimaca Copper Corp | GOLDMAN SACHS vs. Monument Mining Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |