Correlation Between Raymond James and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Raymond James 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 Raymond James and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raymond James Financial and Goldman Sachs Group, you can compare the effects of market volatilities on Raymond James 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 Raymond James with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raymond James and Goldman Sachs.
Diversification Opportunities for Raymond James and Goldman Sachs
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Raymond and Goldman is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Raymond James Financial 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 Raymond James 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 Raymond James Financial 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 Raymond James i.e., Raymond James and Goldman Sachs go up and down completely randomly.
Pair Corralation between Raymond James and Goldman Sachs
Considering the 90-day investment horizon Raymond James is expected to generate 1.19 times less return on investment than Goldman Sachs. In addition to that, Raymond James is 1.05 times more volatile than Goldman Sachs Group. It trades about 0.06 of its total potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.08 per unit of volatility. If you would invest 35,064 in Goldman Sachs Group on September 3, 2024 and sell it today you would earn a total of 25,793 from holding Goldman Sachs Group or generate 73.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raymond James Financial vs. Goldman Sachs Group
Performance |
| Timeline |
| Raymond James Financial |
| Goldman Sachs Group |
Raymond James and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raymond James and Goldman Sachs
The main advantage of trading using opposite Raymond James and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raymond James 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.| Raymond James vs. Riot Blockchain | Raymond James vs. Marathon Digital Holdings | Raymond James vs. Applied Blockchain | Raymond James vs. Hut 8 Corp |
| Goldman Sachs vs. Riot Blockchain | Goldman Sachs vs. Marathon Digital Holdings | Goldman Sachs vs. Applied Blockchain | Goldman Sachs vs. Hut 8 Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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