Correlation Between Goldman Sachs and Marygold Companies
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Marygold Companies 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 Marygold Companies 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 Marygold Companies, you can compare the effects of market volatilities on Goldman Sachs and Marygold Companies 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 Marygold Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Marygold Companies.
Diversification Opportunities for Goldman Sachs and Marygold Companies
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Marygold is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Marygold Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marygold Companies 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 Marygold Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marygold Companies has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Marygold Companies go up and down completely randomly.
Pair Corralation between Goldman Sachs and Marygold Companies
Allowing for the 90-day total investment horizon Goldman Sachs is expected to generate 1.1 times less return on investment than Marygold Companies. But when comparing it to its historical volatility, Goldman Sachs Group is 2.86 times less risky than Marygold Companies. It trades about 0.23 of its potential returns per unit of risk. Marygold Companies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Marygold Companies on August 27, 2024 and sell it today you would earn a total of 13.00 from holding Marygold Companies or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Marygold Companies
Performance |
| Timeline |
| Goldman Sachs Group |
| Marygold Companies |
Goldman Sachs and Marygold Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Marygold Companies
The main advantage of trading using opposite Goldman Sachs and Marygold Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Marygold Companies 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 Marygold Companies will offset losses from the drop in Marygold Companies' 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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