Correlation Between GOLDMAN and NH Foods
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By analyzing existing cross correlation between GOLDMAN SACHS GROUP and NH Foods Ltd, you can compare the effects of market volatilities on GOLDMAN and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN and NH Foods.
Diversification Opportunities for GOLDMAN and NH Foods
Pay attention - limited upside
The 3 months correlation between GOLDMAN and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS GROUP and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of GOLDMAN i.e., GOLDMAN and NH Foods go up and down completely randomly.
Pair Corralation between GOLDMAN and NH Foods
Assuming the 90 days trading horizon GOLDMAN is expected to generate 1.25 times less return on investment than NH Foods. In addition to that, GOLDMAN is 3.7 times more volatile than NH Foods Ltd. It trades about 0.02 of its total potential returns per unit of risk. NH Foods Ltd is currently generating about 0.09 per unit of volatility. If you would invest 1,330 in NH Foods Ltd on September 12, 2024 and sell it today you would earn a total of 370.00 from holding NH Foods Ltd or generate 27.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 42.91% |
| Values | Daily Returns |
GOLDMAN SACHS GROUP vs. NH Foods Ltd
Performance |
| Timeline |
| GOLDMAN SACHS GROUP |
| NH Foods |
GOLDMAN and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLDMAN and NH Foods
The main advantage of trading using opposite GOLDMAN and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLDMAN position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| GOLDMAN vs. NH Foods Ltd | GOLDMAN vs. Bridgford Foods | GOLDMAN vs. Ispire Technology Common | GOLDMAN vs. Turning Point Brands |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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