Correlation Between GOLDMAN and 00108WAF7
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By analyzing existing cross correlation between GOLDMAN SACHS GROUP and AEP TEX INC, you can compare the effects of market volatilities on GOLDMAN and 00108WAF7 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 with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN and 00108WAF7.
Diversification Opportunities for GOLDMAN and 00108WAF7
Very good diversification
The 3 months correlation between GOLDMAN and 00108WAF7 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS GROUP and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and GOLDMAN 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of GOLDMAN i.e., GOLDMAN and 00108WAF7 go up and down completely randomly.
Pair Corralation between GOLDMAN and 00108WAF7
Assuming the 90 days trading horizon GOLDMAN SACHS GROUP is expected to under-perform the 00108WAF7. But the bond apears to be less risky and, when comparing its historical volatility, GOLDMAN SACHS GROUP is 2.24 times less risky than 00108WAF7. The bond trades about -0.3 of its potential returns per unit of risk. The AEP TEX INC is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 7,466 in AEP TEX INC on August 25, 2024 and sell it today you would lose (377.00) from holding AEP TEX INC or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
GOLDMAN SACHS GROUP vs. AEP TEX INC
Performance |
| Timeline |
| GOLDMAN SACHS GROUP |
| AEP TEX INC |
GOLDMAN and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN and 00108WAF7
The main advantage of trading using opposite GOLDMAN and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| GOLDMAN vs. AEP TEX INC | GOLDMAN vs. US BANK NATIONAL | GOLDMAN vs. Eat Beyond Global | GOLDMAN vs. Charles Schwab Corp |
| 00108WAF7 vs. Willamette Valley Vineyards | 00108WAF7 vs. National Beverage Corp | 00108WAF7 vs. Mesa Air Group | 00108WAF7 vs. Diageo PLC ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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