Correlation Between Short Oil and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Short Oil 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 Short Oil and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Oil Gas and Goldman Sachs Financial, you can compare the effects of market volatilities on Short Oil 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 Short Oil with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Oil and Goldman Sachs.
Diversification Opportunities for Short Oil and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Short and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Short Oil Gas and Goldman Sachs Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Financial and Short Oil 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 Short Oil Gas 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 Financial has no effect on the direction of Short Oil i.e., Short Oil and Goldman Sachs go up and down completely randomly.
Pair Corralation between Short Oil and Goldman Sachs
Assuming the 90 days horizon Short Oil is expected to generate 47.43 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Short Oil Gas is 12.36 times less risky than Goldman Sachs. It trades about 0.01 of its potential returns per unit of risk. Goldman Sachs Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 409.00 in Goldman Sachs Financial on October 11, 2024 and sell it today you would lose (309.00) from holding Goldman Sachs Financial or give up 75.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Short Oil Gas vs. Goldman Sachs Financial
Performance |
| Timeline |
| Short Oil Gas |
| Goldman Sachs Financial |
Short Oil and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Oil and Goldman Sachs
The main advantage of trading using opposite Short Oil and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Oil 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.| Short Oil vs. The Hartford Healthcare | Short Oil vs. Deutsche Health And | Short Oil vs. Prudential Health Sciences | Short Oil vs. Hartford Healthcare Hls |
| Goldman Sachs vs. Tortoise Energy Independence | Goldman Sachs vs. World Energy Fund | Goldman Sachs vs. Fidelity Advisor Energy | Goldman Sachs vs. Short Oil Gas |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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