Correlation Between Meet Kevin and Goldman Sachs

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

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

Diversification Opportunities for Meet Kevin and Goldman Sachs

-0.14

Correlation Coefficient

Meet Kevin  Goldman Sachs

Good diversification

The 3 months correlation between Meet and Goldman is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding The Meet Kevin and Goldman Sachs Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Future and Meet Kevin 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 The Meet Kevin 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 Future has no effect on the direction of Meet Kevin i.e., Meet Kevin and Goldman Sachs go up and down completely randomly.

Pair Corralation between Meet Kevin and Goldman Sachs

Allowing for the 90-day total investment horizon The Meet Kevin is expected to generate 0.54 times more return on investment than Goldman Sachs. However, The Meet Kevin is 1.84 times less risky than Goldman Sachs. It trades about 0.0 of its potential returns per unit of risk. Goldman Sachs Future is currently generating about -0.11 per unit of risk. If you would invest  2,614  in The Meet Kevin on December 19, 2024 and sell it today you would lose (4.00) from holding The Meet Kevin or give up 0.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	72.5%
Values	Daily Returns

The Meet Kevin  vs.  Goldman Sachs Future

Meet Kevin

Risk-Adjusted Performance

Insignificant

Over the last 90 days The Meet Kevin has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Meet Kevin is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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 quite persistent technical and fundamental indicators, Goldman Sachs is not utilizing all of its potentials. The new stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Meet Kevin and Goldman Sachs

The main advantage of trading using opposite Meet Kevin and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meet Kevin 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 The Meet Kevin and Goldman Sachs Future 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.