Correlation Between Oshidori International and Goldman Sachs

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

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

Diversification Opportunities for Oshidori International and Goldman Sachs

-0.15

Correlation Coefficient

Oshidori International  Goldman Sachs

Good diversification

The 3 months correlation between Oshidori and Goldman is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Goldman Sachs Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Absolute and Oshidori International 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 Oshidori International Holdings 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 Absolute has no effect on the direction of Oshidori International i.e., Oshidori International and Goldman Sachs go up and down completely randomly.

Pair Corralation between Oshidori International and Goldman Sachs

Assuming the 90 days horizon Oshidori International Holdings is expected to generate 164.61 times more return on investment than Goldman Sachs. However, Oshidori International is 164.61 times more volatile than Goldman Sachs Absolute. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Absolute is currently generating about 0.06 per unit of risk. If you would invest  0.07  in Oshidori International Holdings on October 7, 2024 and sell it today you would earn a total of  3.53  from holding Oshidori International Holdings or generate 5042.86% return on investment over 90 days.

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

Oshidori International Holding  vs.  Goldman Sachs Absolute

Oshidori International

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oshidori International Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental indicators, Oshidori International reported solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs Absolute

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Absolute has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Goldman Sachs is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oshidori International and Goldman Sachs

The main advantage of trading using opposite Oshidori International and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International 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 Oshidori International Holdings and Goldman Sachs Absolute 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.