Correlation Between Goldman Sachs and GREI

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

By analyzing existing cross correlation between Goldman Sachs Future and GREI, you can compare the effects of market volatilities on Goldman Sachs and GREI 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 GREI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and GREI.

Diversification Opportunities for Goldman Sachs and GREI

0.0

Correlation Coefficient

Goldman Sachs  GREI

Pay attention - limited upside

The 3 months correlation between Goldman and GREI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and GREI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREI 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 Future are associated (or correlated) with GREI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREI has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and GREI go up and down completely randomly.

Pair Corralation between Goldman Sachs and GREI

If you would invest (100.00) in GREI on December 29, 2024 and sell it today you would earn a total of  100.00  from holding GREI or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Goldman Sachs Future  vs.  GREI

Goldman Sachs Future

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goldman Sachs Future has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Etf's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

GREI

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, GREI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Goldman Sachs and GREI

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

The idea behind Goldman Sachs Future and GREI 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.