Correlation Between Goldman Sachs and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and GraniteShares 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 GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs ActiveBeta and GraniteShares 3x Short, you can compare the effects of market volatilities on Goldman Sachs and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and GraniteShares.
Diversification Opportunities for Goldman Sachs and GraniteShares
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and GraniteShares is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs ActiveBeta and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short 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 ActiveBeta are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and GraniteShares go up and down completely randomly.
Pair Corralation between Goldman Sachs and GraniteShares
Assuming the 90 days trading horizon Goldman Sachs ActiveBeta is expected to generate 0.08 times more return on investment than GraniteShares. However, Goldman Sachs ActiveBeta is 12.77 times less risky than GraniteShares. It trades about 0.24 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.09 per unit of risk. If you would invest 2,787 in Goldman Sachs ActiveBeta on November 28, 2024 and sell it today you would earn a total of 123.00 from holding Goldman Sachs ActiveBeta or generate 4.41% 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 ActiveBeta vs. GraniteShares 3x Short
Performance |
| Timeline |
| Goldman Sachs ActiveBeta |
| GraniteShares 3x Short |
Goldman Sachs and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and GraniteShares
The main advantage of trading using opposite Goldman Sachs and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| Goldman Sachs vs. WisdomTree NASDAQ 100 | Goldman Sachs vs. WisdomTree Silver 3x | Goldman Sachs vs. WisdomTree SP 500 | Goldman Sachs vs. Invesco Technology SP |
| GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Long | GraniteShares vs. GraniteShares 3x Short |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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