Correlation Between GOLDMAN SACHS and Else Nutrition
Can any of the company-specific risk be diversified away by investing in both GOLDMAN SACHS and Else Nutrition 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 Else Nutrition 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 Else Nutrition Holdings, you can compare the effects of market volatilities on GOLDMAN SACHS and Else Nutrition 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 Else Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN SACHS and Else Nutrition.
Diversification Opportunities for GOLDMAN SACHS and Else Nutrition
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GOLDMAN and Else is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CDR and Else Nutrition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Else Nutrition Holdings 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 Else Nutrition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Else Nutrition Holdings has no effect on the direction of GOLDMAN SACHS i.e., GOLDMAN SACHS and Else Nutrition go up and down completely randomly.
Pair Corralation between GOLDMAN SACHS and Else Nutrition
Assuming the 90 days trading horizon GOLDMAN SACHS CDR is expected to generate 0.18 times more return on investment than Else Nutrition. However, GOLDMAN SACHS CDR is 5.62 times less risky than Else Nutrition. It trades about 0.07 of its potential returns per unit of risk. Else Nutrition Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,796 in GOLDMAN SACHS CDR on September 3, 2024 and sell it today you would earn a total of 1,255 from holding GOLDMAN SACHS CDR or generate 69.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOLDMAN SACHS CDR vs. Else Nutrition Holdings
Performance |
| Timeline |
| GOLDMAN SACHS CDR |
| Else Nutrition Holdings |
GOLDMAN SACHS and Else Nutrition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN SACHS and Else Nutrition
The main advantage of trading using opposite GOLDMAN SACHS and Else Nutrition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN SACHS position performs unexpectedly, Else Nutrition 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 Else Nutrition will offset losses from the drop in Else Nutrition'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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