Correlation Between MarksSpencer and Goldman Sachs

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

By analyzing existing cross correlation between MarksSpencer 7125 percent and Goldman Sachs Group, you can compare the effects of market volatilities on MarksSpencer 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 MarksSpencer with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of MarksSpencer and Goldman Sachs.

Diversification Opportunities for MarksSpencer and Goldman Sachs

-0.75

Correlation Coefficient

MarksSpencer  Goldman Sachs

Pay attention - limited upside

The 3 months correlation between MarksSpencer and Goldman is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding MarksSpencer 7125 percent and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group and MarksSpencer 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 MarksSpencer 7125 percent 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 Group has no effect on the direction of MarksSpencer i.e., MarksSpencer and Goldman Sachs go up and down completely randomly.

Pair Corralation between MarksSpencer and Goldman Sachs

Assuming the 90 days trading horizon MarksSpencer 7125 percent is expected to generate 0.32 times more return on investment than Goldman Sachs. However, MarksSpencer 7125 percent is 3.12 times less risky than Goldman Sachs. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.02 per unit of risk. If you would invest  10,496  in MarksSpencer 7125 percent on December 26, 2024 and sell it today you would earn a total of  177.00  from holding MarksSpencer 7125 percent or generate 1.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	60.0%
Values	Daily Returns

MarksSpencer 7125 percent  vs.  Goldman Sachs Group

MarksSpencer 7125 percent

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MarksSpencer 7125 percent are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MarksSpencer is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Goldman Sachs Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Goldman Sachs is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MarksSpencer and Goldman Sachs

The main advantage of trading using opposite MarksSpencer and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MarksSpencer 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 MarksSpencer 7125 percent and Goldman Sachs Group 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 Stocks Directory module to find actively traded stocks across global markets.