Correlation Between Goldman Sachs and BurTech Acquisition
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and BurTech Acquisition 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 BurTech Acquisition 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 BurTech Acquisition Corp, you can compare the effects of market volatilities on Goldman Sachs and BurTech Acquisition 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 BurTech Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and BurTech Acquisition.
Diversification Opportunities for Goldman Sachs and BurTech Acquisition
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and BurTech is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and BurTech Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BurTech Acquisition 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 Group are associated (or correlated) with BurTech Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BurTech Acquisition Corp has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and BurTech Acquisition go up and down completely randomly.
Pair Corralation between Goldman Sachs and BurTech Acquisition
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 15.95 times more return on investment than BurTech Acquisition. However, Goldman Sachs is 15.95 times more volatile than BurTech Acquisition Corp. It trades about 0.22 of its potential returns per unit of risk. BurTech Acquisition Corp is currently generating about 0.2 per unit of risk. If you would invest 52,358 in Goldman Sachs Group on August 29, 2024 and sell it today you would earn a total of 8,185 from holding Goldman Sachs Group or generate 15.63% 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. BurTech Acquisition Corp
Performance |
| Timeline |
| Goldman Sachs Group |
| BurTech Acquisition Corp |
Goldman Sachs and BurTech Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and BurTech Acquisition
The main advantage of trading using opposite Goldman Sachs and BurTech Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, BurTech Acquisition 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 BurTech Acquisition will offset losses from the drop in BurTech Acquisition's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| BurTech Acquisition vs. Swiftmerge Acquisition Corp | BurTech Acquisition vs. CF Acquisition VII | BurTech Acquisition vs. Portage Fintech Acquisition | BurTech Acquisition vs. ClimateRock Class A |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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