Correlation Between Zapata Computing and Goldman Sachs

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

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

Diversification Opportunities for Zapata Computing and Goldman Sachs

0.0

Correlation Coefficient

Zapata Computing  Goldman Sachs

Pay attention - limited upside

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

Pair Corralation between Zapata Computing and Goldman Sachs

If you would invest (100.00) in Zapata Computing Holdings on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Zapata Computing Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Zapata Computing Holdings  vs.  Goldman Sachs Technology

Zapata Computing Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zapata Computing Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Zapata Computing is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Goldman Sachs Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goldman Sachs Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Zapata Computing and Goldman Sachs

The main advantage of trading using opposite Zapata Computing and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zapata Computing 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 Zapata Computing Holdings and Goldman Sachs Technology 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.