Correlation Between Goldman Sachs and Security National
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Security National 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 Security National 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 Security National Financial, you can compare the effects of market volatilities on Goldman Sachs and Security National 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 Security National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Security National.
Diversification Opportunities for Goldman Sachs and Security National
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Security is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Security National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security National 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 Security National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security National has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Security National go up and down completely randomly.
Pair Corralation between Goldman Sachs and Security National
Allowing for the 90-day total investment horizon Goldman Sachs is expected to generate 1.91 times less return on investment than Security National. In addition to that, Goldman Sachs is 1.03 times more volatile than Security National Financial. It trades about 0.23 of its total potential returns per unit of risk. Security National Financial is currently generating about 0.45 per unit of volatility. If you would invest 982.00 in Security National Financial on August 28, 2024 and sell it today you would earn a total of 314.00 from holding Security National Financial or generate 31.98% 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. Security National Financial
Performance |
| Timeline |
| Goldman Sachs Group |
| Security National |
Goldman Sachs and Security National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Security National
The main advantage of trading using opposite Goldman Sachs and Security National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Security National 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 Security National will offset losses from the drop in Security National's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Security National vs. Guild Holdings Co | Security National vs. Encore Capital Group | Security National vs. PennyMac Finl Svcs | Security National vs. CNFinance Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |