Correlation Between Goldman Sachs and Axis Technologies
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Axis Technologies 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 Axis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and Axis Technologies Group, you can compare the effects of market volatilities on Goldman Sachs and Axis Technologies 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 Axis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Axis Technologies.
Diversification Opportunities for Goldman Sachs and Axis Technologies
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Axis is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Axis Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Technologies 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 Group are associated (or correlated) with Axis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Technologies has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Axis Technologies go up and down completely randomly.
Pair Corralation between Goldman Sachs and Axis Technologies
Allowing for the 90-day total investment horizon Goldman Sachs is expected to generate 56.35 times less return on investment than Axis Technologies. But when comparing it to its historical volatility, Goldman Sachs Group is 40.04 times less risky than Axis Technologies. It trades about 0.13 of its potential returns per unit of risk. Axis Technologies Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Axis Technologies Group on August 29, 2024 and sell it today you would earn a total of 0.09 from holding Axis Technologies Group or generate 180.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Axis Technologies Group
Performance |
| Timeline |
| Goldman Sachs Group |
| Axis Technologies |
Goldman Sachs and Axis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Axis Technologies
The main advantage of trading using opposite Goldman Sachs and Axis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Axis Technologies 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 Axis Technologies will offset losses from the drop in Axis Technologies' long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Axis Technologies vs. SPENN Technology AS | Axis Technologies vs. OFX Group Ltd | Axis Technologies vs. APAC Resources Limited | Axis Technologies vs. Cypherpunk Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |