Correlation Between Coor Service and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both Coor Service and Goldman Sachs 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 Coor Service and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coor Service Management and The Goldman Sachs, you can compare the effects of market volatilities on Coor Service and Goldman Sachs 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 Coor Service with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Goldman Sachs.

Diversification Opportunities for Coor Service and Goldman Sachs

-0.61

Correlation Coefficient

Coor Service  Goldman Sachs

Excellent diversification

The 3 months correlation between Coor and Goldman is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs and Coor Service 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 Coor Service Management are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs has no effect on the direction of Coor Service i.e., Coor Service and Goldman Sachs go up and down completely randomly.

Pair Corralation between Coor Service and Goldman Sachs

Assuming the 90 days horizon Coor Service Management is expected to generate 1.61 times more return on investment than Goldman Sachs. However, Coor Service is 1.61 times more volatile than The Goldman Sachs. It trades about 0.05 of its potential returns per unit of risk. The Goldman Sachs is currently generating about -0.05 per unit of risk. If you would invest  285.00  in Coor Service Management on December 20, 2024 and sell it today you would earn a total of  21.00  from holding Coor Service Management or generate 7.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Coor Service Management  vs.  The Goldman Sachs

Coor Service Management

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coor Service Management are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Coor Service may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Goldman Sachs

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Goldman Sachs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Coor Service and Goldman Sachs

The main advantage of trading using opposite Coor Service and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.

The idea behind Coor Service Management and The Goldman Sachs pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.