Correlation Between GOLDMAN SACHS and Endurance Gold
Can any of the company-specific risk be diversified away by investing in both GOLDMAN SACHS and Endurance Gold 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 Endurance Gold 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 Endurance Gold Corp, you can compare the effects of market volatilities on GOLDMAN SACHS and Endurance Gold 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 Endurance Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN SACHS and Endurance Gold.
Diversification Opportunities for GOLDMAN SACHS and Endurance Gold
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOLDMAN and Endurance is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CDR and Endurance Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endurance Gold Corp 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 Endurance Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endurance Gold Corp has no effect on the direction of GOLDMAN SACHS i.e., GOLDMAN SACHS and Endurance Gold go up and down completely randomly.
Pair Corralation between GOLDMAN SACHS and Endurance Gold
Assuming the 90 days trading horizon GOLDMAN SACHS CDR is expected to generate 0.76 times more return on investment than Endurance Gold. However, GOLDMAN SACHS CDR is 1.31 times less risky than Endurance Gold. It trades about 0.22 of its potential returns per unit of risk. Endurance Gold Corp is currently generating about -0.06 per unit of risk. If you would invest 2,616 in GOLDMAN SACHS CDR on August 30, 2024 and sell it today you would earn a total of 400.00 from holding GOLDMAN SACHS CDR or generate 15.29% 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. Endurance Gold Corp
Performance |
| Timeline |
| GOLDMAN SACHS CDR |
| Endurance Gold Corp |
GOLDMAN SACHS and Endurance Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN SACHS and Endurance Gold
The main advantage of trading using opposite GOLDMAN SACHS and Endurance Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN SACHS position performs unexpectedly, Endurance Gold 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 Endurance Gold will offset losses from the drop in Endurance Gold's long position.| GOLDMAN SACHS vs. Western Copper and | GOLDMAN SACHS vs. Maple Leaf Foods | GOLDMAN SACHS vs. Labrador Iron Ore | GOLDMAN SACHS vs. Profound Medical Corp |
| Endurance Gold vs. Dynasty Gold Corp | Endurance Gold vs. Carlin Gold | Endurance Gold vs. Desert Gold Ventures | Endurance Gold vs. Cariboo Rose Resources |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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