Correlation Between GOLDMAN SACHS and Rogers Communications

Can any of the company-specific risk be diversified away by investing in both GOLDMAN SACHS and Rogers Communications 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 Rogers Communications 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 Rogers Communications, you can compare the effects of market volatilities on GOLDMAN SACHS and Rogers Communications 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 Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN SACHS and Rogers Communications.

Diversification Opportunities for GOLDMAN SACHS and Rogers Communications

-0.81

Correlation Coefficient

GOLDMAN SACHS  Rogers Communications

Pay attention - limited upside

The 3 months correlation between GOLDMAN and Rogers is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CDR and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications 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 Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of GOLDMAN SACHS i.e., GOLDMAN SACHS and Rogers Communications go up and down completely randomly.

Pair Corralation between GOLDMAN SACHS and Rogers Communications

Assuming the 90 days trading horizon GOLDMAN SACHS CDR is expected to generate 1.01 times more return on investment than Rogers Communications. However, GOLDMAN SACHS is 1.01 times more volatile than Rogers Communications. It trades about 0.08 of its potential returns per unit of risk. Rogers Communications is currently generating about 0.0 per unit of risk. If you would invest  1,676  in GOLDMAN SACHS CDR on September 12, 2024 and sell it today you would earn a total of  1,238  from holding GOLDMAN SACHS CDR or generate 73.87% return on investment over 90 days.

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

GOLDMAN SACHS CDR  vs.  Rogers Communications

GOLDMAN SACHS CDR

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDMAN SACHS CDR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, GOLDMAN SACHS displayed solid returns over the last few months and may actually be approaching a breakup point.

Rogers Communications

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rogers Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Rogers Communications is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GOLDMAN SACHS and Rogers Communications

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

The idea behind GOLDMAN SACHS CDR and Rogers Communications 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 CEOs Directory module to screen CEOs from public companies around the world.