Correlation Between Goldman Sachs and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Goldman Sachs and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Inflection Point.
Diversification Opportunities for Goldman Sachs and Inflection Point
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Inflection is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Inflection Point go up and down completely randomly.
Pair Corralation between Goldman Sachs and Inflection Point
If you would invest 51,830 in Goldman Sachs Group on August 23, 2024 and sell it today you would earn a total of 7,781 from holding Goldman Sachs Group or generate 15.01% 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. Inflection Point Acquisition
Performance |
| Timeline |
| Goldman Sachs Group |
| Inflection Point Acq |
Goldman Sachs and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Inflection Point
The main advantage of trading using opposite Goldman Sachs and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Goldman Sachs vs. Evercore Partners | Goldman Sachs vs. SCOR PK | Goldman Sachs vs. Aquagold International | Goldman Sachs vs. Small Cap Core |
| Inflection Point vs. Pearson PLC ADR | Inflection Point vs. Aris Water Solutions | Inflection Point vs. Alliant Energy Corp | Inflection Point vs. GE Vernova LLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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