Correlation Between Goldman Sachs and Plus500
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Plus500 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 Plus500 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 Plus500, you can compare the effects of market volatilities on Goldman Sachs and Plus500 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 Plus500. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Plus500.
Diversification Opportunities for Goldman Sachs and Plus500
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Plus500 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Plus500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plus500 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 Plus500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plus500 has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Plus500 go up and down completely randomly.
Pair Corralation between Goldman Sachs and Plus500
If you would invest 52,428 in Goldman Sachs Group on August 30, 2024 and sell it today you would earn a total of 8,115 from holding Goldman Sachs Group or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Plus500
Performance |
| Timeline |
| Goldman Sachs Group |
| Plus500 |
Goldman Sachs and Plus500 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Plus500
The main advantage of trading using opposite Goldman Sachs and Plus500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Plus500 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 Plus500 will offset losses from the drop in Plus500's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Plus500 vs. MarketAxess Holdings | Plus500 vs. Interactive Brokers Group | Plus500 vs. Evercore Partners | Plus500 vs. PJT Partners |
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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