Correlation Between GOLDMAN SACHS and Quebecor

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

By analyzing existing cross correlation between GOLDMAN SACHS CDR and Quebecor, you can compare the effects of market volatilities on GOLDMAN SACHS and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN SACHS and Quebecor.

Diversification Opportunities for GOLDMAN SACHS and Quebecor

-0.79

Correlation Coefficient

GOLDMAN SACHS  Quebecor

Pay attention - limited upside

The 3 months correlation between GOLDMAN and Quebecor is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CDR and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 CDR are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of GOLDMAN SACHS i.e., GOLDMAN SACHS and Quebecor go up and down completely randomly.

Pair Corralation between GOLDMAN SACHS and Quebecor

Assuming the 90 days trading horizon GOLDMAN SACHS CDR is expected to generate 1.47 times more return on investment than Quebecor. However, GOLDMAN SACHS is 1.47 times more volatile than Quebecor. It trades about -0.15 of its potential returns per unit of risk. Quebecor is currently generating about -0.27 per unit of risk. If you would invest  2,982  in GOLDMAN SACHS CDR on October 5, 2024 and sell it today you would lose (122.00) from holding GOLDMAN SACHS CDR or give up 4.09% of portfolio value over 90 days.

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

GOLDMAN SACHS CDR  vs.  Quebecor

GOLDMAN SACHS CDR

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDMAN SACHS CDR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, GOLDMAN SACHS displayed solid returns over the last few months and may actually be approaching a breakup point.

Quebecor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quebecor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with GOLDMAN SACHS and Quebecor

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

The idea behind GOLDMAN SACHS CDR and Quebecor 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.