Correlation Between Garden Stage and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Garden Stage and Goldman Sachs 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 Garden Stage and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garden Stage Limited and Goldman Sachs Group, you can compare the effects of market volatilities on Garden Stage and Goldman Sachs 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 Garden Stage with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garden Stage and Goldman Sachs.
Diversification Opportunities for Garden Stage and Goldman Sachs
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Garden and Goldman is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Garden Stage Limited and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group and Garden Stage 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 Garden Stage Limited are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Group has no effect on the direction of Garden Stage i.e., Garden Stage and Goldman Sachs go up and down completely randomly.
Pair Corralation between Garden Stage and Goldman Sachs
Given the investment horizon of 90 days Garden Stage Limited is expected to generate 13.54 times more return on investment than Goldman Sachs. However, Garden Stage is 13.54 times more volatile than Goldman Sachs Group. It trades about 0.04 of its potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.08 per unit of risk. If you would invest 400.00 in Garden Stage Limited on September 4, 2024 and sell it today you would lose (338.00) from holding Garden Stage Limited or give up 84.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 51.31% |
| Values | Daily Returns |
Garden Stage Limited vs. Goldman Sachs Group
Performance |
| Timeline |
| Garden Stage Limited |
| Goldman Sachs Group |
Garden Stage and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garden Stage and Goldman Sachs
The main advantage of trading using opposite Garden Stage and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garden Stage position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Garden Stage vs. Goldman Sachs Group | Garden Stage vs. Applied Blockchain | Garden Stage vs. Hut 8 Corp | Garden Stage vs. Bitfarms |
| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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