Correlation Between Goldman Sachs and Catalyst/warrington
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Catalyst/warrington 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 Catalyst/warrington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Small and Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Goldman Sachs and Catalyst/warrington 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 Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Catalyst/warrington.
Diversification Opportunities for Goldman Sachs and Catalyst/warrington
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Catalyst/warrington is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Small and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington 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 Small are associated (or correlated) with Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Catalyst/warrington go up and down completely randomly.
Pair Corralation between Goldman Sachs and Catalyst/warrington
Assuming the 90 days horizon Goldman Sachs Small is expected to generate 5.83 times more return on investment than Catalyst/warrington. However, Goldman Sachs is 5.83 times more volatile than Catalystwarrington Strategic Program. It trades about 0.13 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.03 per unit of risk. If you would invest 5,054 in Goldman Sachs Small on August 29, 2025 and sell it today you would earn a total of 1,102 from holding Goldman Sachs Small or generate 21.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Small vs. Catalystwarrington Strategic P
Performance |
| Timeline |
| Goldman Sachs Small |
| Catalyst/warrington |
Goldman Sachs and Catalyst/warrington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Catalyst/warrington
The main advantage of trading using opposite Goldman Sachs and Catalyst/warrington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Catalyst/warrington 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 Catalyst/warrington will offset losses from the drop in Catalyst/warrington's long position.| Goldman Sachs vs. Matson Money Equity | Goldman Sachs vs. Hsbc Treasury Money | Goldman Sachs vs. Money Market Obligations | Goldman Sachs vs. Franklin Government Money |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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