Correlation Between Robix Environmental and Goldman Sachs

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

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

Diversification Opportunities for Robix Environmental and Goldman Sachs

0.0

Correlation Coefficient

Robix Environmental  Goldman Sachs

Pay attention - limited upside

The 3 months correlation between Robix and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Robix Environmental Technologi and Goldman Sachs Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Capital and Robix Environmental 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 Robix Environmental Technologies 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 Capital has no effect on the direction of Robix Environmental i.e., Robix Environmental and Goldman Sachs go up and down completely randomly.

Pair Corralation between Robix Environmental and Goldman Sachs

If you would invest  0.01  in Robix Environmental Technologies on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Robix Environmental Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Robix Environmental Technologi  vs.  Goldman Sachs Capital

Robix Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robix Environmental Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Robix Environmental is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Goldman Sachs Capital

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Capital are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, Goldman Sachs is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Robix Environmental and Goldman Sachs

The main advantage of trading using opposite Robix Environmental and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robix Environmental 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 Robix Environmental Technologies and Goldman Sachs Capital 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.