Correlation Between Goldman Sachs and CleanSpark
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and CleanSpark 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 CleanSpark 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 CleanSpark, you can compare the effects of market volatilities on Goldman Sachs and CleanSpark 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 CleanSpark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and CleanSpark.
Diversification Opportunities for Goldman Sachs and CleanSpark
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and CleanSpark is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and CleanSpark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanSpark 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 CleanSpark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanSpark has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and CleanSpark go up and down completely randomly.
Pair Corralation between Goldman Sachs and CleanSpark
Allowing for the 90-day total investment horizon Goldman Sachs is expected to generate 2.29 times less return on investment than CleanSpark. But when comparing it to its historical volatility, Goldman Sachs Group is 3.43 times less risky than CleanSpark. It trades about 0.25 of its potential returns per unit of risk. CleanSpark is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,139 in CleanSpark on August 26, 2024 and sell it today you would earn a total of 371.00 from holding CleanSpark or generate 32.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. CleanSpark
Performance |
| Timeline |
| Goldman Sachs Group |
| CleanSpark |
Goldman Sachs and CleanSpark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and CleanSpark
The main advantage of trading using opposite Goldman Sachs and CleanSpark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, CleanSpark 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 CleanSpark will offset losses from the drop in CleanSpark's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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