Correlation Between Goldman Sachs and Intel

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

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

Diversification Opportunities for Goldman Sachs and Intel

0.0

Correlation Coefficient

Goldman Sachs  Intel

Pay attention - limited upside

The 3 months correlation between Goldman and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Target and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Goldman Sachs 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 Goldman Sachs Target are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Intel go up and down completely randomly.

Pair Corralation between Goldman Sachs and Intel

If you would invest  873.00  in Goldman Sachs Target on January 30, 2024 and sell it today you would earn a total of  0.00  from holding Goldman Sachs Target or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Goldman Sachs Target  vs.  Intel

Goldman Sachs Target

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Target has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Goldman Sachs is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Goldman Sachs and Intel

The main advantage of trading using opposite Goldman Sachs and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.

The idea behind Goldman Sachs Target and Intel 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.