Correlation Between Goldman Sachs and PACIFIC
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By analyzing existing cross correlation between Goldman Sachs Group and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Goldman Sachs and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and PACIFIC.
Diversification Opportunities for Goldman Sachs and PACIFIC
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and PACIFIC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and PACIFIC go up and down completely randomly.
Pair Corralation between Goldman Sachs and PACIFIC
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 1.7 times more return on investment than PACIFIC. However, Goldman Sachs is 1.7 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.26 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.18 per unit of risk. If you would invest 51,935 in Goldman Sachs Group on September 2, 2024 and sell it today you would earn a total of 8,922 from holding Goldman Sachs Group or generate 17.18% 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. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Goldman Sachs Group |
| PACIFIC GAS ELECTRIC |
Goldman Sachs and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and PACIFIC
The main advantage of trading using opposite Goldman Sachs and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's 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 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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