Correlation Between Goldman Sachs and Bear Profund
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Bear Profund 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 Goldman Sachs and Bear Profund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Technology and Bear Profund Bear, you can compare the effects of market volatilities on Goldman Sachs and Bear Profund 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 Sachs with a short position of Bear Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Bear Profund.
Diversification Opportunities for Goldman Sachs and Bear Profund
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOLDMAN and Bear is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Bear Profund Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bear Profund Bear and Goldman Sachs 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 Technology are associated (or correlated) with Bear Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bear Profund Bear has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Bear Profund go up and down completely randomly.
Pair Corralation between Goldman Sachs and Bear Profund
Assuming the 90 days horizon Goldman Sachs Technology is expected to generate 1.34 times more return on investment than Bear Profund. However, Goldman Sachs is 1.34 times more volatile than Bear Profund Bear. It trades about 0.07 of its potential returns per unit of risk. Bear Profund Bear is currently generating about -0.03 per unit of risk. If you would invest 2,658 in Goldman Sachs Technology on March 22, 2025 and sell it today you would earn a total of 270.00 from holding Goldman Sachs Technology or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Technology vs. Bear Profund Bear
Performance |
| Timeline |
| Goldman Sachs Technology |
| Bear Profund Bear |
Goldman Sachs and Bear Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Bear Profund
The main advantage of trading using opposite Goldman Sachs and Bear Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Bear Profund 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 Bear Profund will offset losses from the drop in Bear Profund's long position.| Goldman Sachs vs. Dimensional Retirement Income | Goldman Sachs vs. Blackrock Moderate Prepared | Goldman Sachs vs. Mfs Lifetime Retirement | Goldman Sachs vs. Mainstay Moderate Etf |
| Bear Profund vs. Ab High Income | Bear Profund vs. Dunham High Yield | Bear Profund vs. Ab High Income | Bear Profund vs. Transamerica High Yield |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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