Correlation Between Cref Inflation and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Cref Inflation 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 Cref Inflation and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Goldman Sachs Clean, you can compare the effects of market volatilities on Cref Inflation 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 Cref Inflation with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Goldman Sachs.
Diversification Opportunities for Cref Inflation and Goldman Sachs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cref and Goldman is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean and Cref Inflation 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 Cref Inflation Linked Bond 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 Clean has no effect on the direction of Cref Inflation i.e., Cref Inflation and Goldman Sachs go up and down completely randomly.
Pair Corralation between Cref Inflation and Goldman Sachs
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to generate 0.18 times more return on investment than Goldman Sachs. However, Cref Inflation Linked Bond is 5.63 times less risky than Goldman Sachs. It trades about 0.1 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.01 per unit of risk. If you would invest 7,923 in Cref Inflation Linked Bond on September 12, 2024 and sell it today you would earn a total of 640.00 from holding Cref Inflation Linked Bond or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cref Inflation Linked Bond vs. Goldman Sachs Clean
Performance |
Timeline |
Cref Inflation Linked |
Goldman Sachs Clean |
Cref Inflation and Goldman Sachs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cref Inflation and Goldman Sachs
The main advantage of trading using opposite Cref Inflation and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation 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.Cref Inflation vs. Queens Road Small | Cref Inflation vs. Boston Partners Small | Cref Inflation vs. Valic Company I | Cref Inflation vs. Fpa Queens Road |
Goldman Sachs vs. Kinetics Internet Fund | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. HUMANA INC | Goldman Sachs vs. Barloworld Ltd ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |