Correlation Between Goldman Sachs and Garden Stage
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Garden Stage 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 Garden Stage 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 Garden Stage Limited, you can compare the effects of market volatilities on Goldman Sachs and Garden Stage 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 Garden Stage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Garden Stage.
Diversification Opportunities for Goldman Sachs and Garden Stage
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Garden is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Garden Stage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garden Stage Limited 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 Garden Stage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garden Stage Limited has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Garden Stage go up and down completely randomly.
Pair Corralation between Goldman Sachs and Garden Stage
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 0.13 times more return on investment than Garden Stage. However, Goldman Sachs Group is 7.82 times less risky than Garden Stage. It trades about -0.11 of its potential returns per unit of risk. Garden Stage Limited is currently generating about -0.11 per unit of risk. If you would invest 59,937 in Goldman Sachs Group on September 12, 2024 and sell it today you would lose (1,434) from holding Goldman Sachs Group or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goldman Sachs Group vs. Garden Stage Limited
Performance |
| Timeline |
| Goldman Sachs Group |
| Garden Stage Limited |
Goldman Sachs and Garden Stage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Garden Stage
The main advantage of trading using opposite Goldman Sachs and Garden Stage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Garden Stage 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 Garden Stage will offset losses from the drop in Garden Stage's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Garden Stage vs. Scully Royalty | Garden Stage vs. Oppenheimer Holdings | Garden Stage vs. Houlihan Lokey | Garden Stage vs. Stonex Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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