Correlation Between Goldman Sachs and SPS Commerce
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and SPS Commerce 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 SPS Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and SPS Commerce, you can compare the effects of market volatilities on Goldman Sachs and SPS Commerce 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 SPS Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and SPS Commerce.
Diversification Opportunities for Goldman Sachs and SPS Commerce
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and SPS is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and SPS Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPS Commerce 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 Group are associated (or correlated) with SPS Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPS Commerce has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and SPS Commerce go up and down completely randomly.
Pair Corralation between Goldman Sachs and SPS Commerce
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 0.39 times more return on investment than SPS Commerce. However, Goldman Sachs Group is 2.53 times less risky than SPS Commerce. It trades about 0.05 of its potential returns per unit of risk. SPS Commerce is currently generating about -0.3 per unit of risk. If you would invest 76,332 in Goldman Sachs Group on August 19, 2025 and sell it today you would earn a total of 1,224 from holding Goldman Sachs Group or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. SPS Commerce
Performance |
| Timeline |
| Goldman Sachs Group |
| SPS Commerce |
Goldman Sachs and SPS Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and SPS Commerce
The main advantage of trading using opposite Goldman Sachs and SPS Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, SPS Commerce 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 SPS Commerce will offset losses from the drop in SPS Commerce's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. HSBC Holdings PLC | Goldman Sachs vs. American Express | Goldman Sachs vs. Royal Bank of |
| SPS Commerce vs. Swvl Holdings Corp | SPS Commerce vs. SIMPPLE LTD Ordinary | SPS Commerce vs. Cloudastructure, Class A | SPS Commerce vs. Viewbix Common Stock |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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