Correlation Between Goldman Sachs and Bitcoin Depot
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Bitcoin Depot 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 Bitcoin Depot 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 Bitcoin Depot, you can compare the effects of market volatilities on Goldman Sachs and Bitcoin Depot 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 Bitcoin Depot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Bitcoin Depot.
Diversification Opportunities for Goldman Sachs and Bitcoin Depot
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Bitcoin is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Bitcoin Depot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Depot 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 Bitcoin Depot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Depot has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Bitcoin Depot go up and down completely randomly.
Pair Corralation between Goldman Sachs and Bitcoin Depot
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 0.26 times more return on investment than Bitcoin Depot. However, Goldman Sachs Group is 3.9 times less risky than Bitcoin Depot. It trades about 0.1 of its potential returns per unit of risk. Bitcoin Depot is currently generating about -0.04 per unit of risk. If you would invest 29,924 in Goldman Sachs Group on December 2, 2024 and sell it today you would earn a total of 32,305 from holding Goldman Sachs Group or generate 107.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Goldman Sachs Group vs. Bitcoin Depot
Performance |
Timeline |
Goldman Sachs Group |
Bitcoin Depot |
Goldman Sachs and Bitcoin Depot Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Bitcoin Depot
The main advantage of trading using opposite Goldman Sachs and Bitcoin Depot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Bitcoin Depot 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 Bitcoin Depot will offset losses from the drop in Bitcoin Depot's long position.Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
Bitcoin Depot vs. Delek Logistics Partners | Bitcoin Depot vs. Keurig Dr Pepper | Bitcoin Depot vs. LB Foster | Bitcoin Depot vs. Lindblad Expeditions Holdings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stocks Directory Find actively traded stocks across global markets |