Correlation Between Goldman Sachs and HITHINK ROYALFLUSH

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Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and HITHINK ROYALFLUSH, you can compare the effects of market volatilities on Goldman Sachs and HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and HITHINK ROYALFLUSH.

Diversification Opportunities for Goldman Sachs and HITHINK ROYALFLUSH

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Goldman and HITHINK is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and HITHINK ROYALFLUSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITHINK ROYALFLUSH 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 Group are associated (or correlated) with HITHINK ROYALFLUSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITHINK ROYALFLUSH has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and HITHINK ROYALFLUSH go up and down completely randomly.

Pair Corralation between Goldman Sachs and HITHINK ROYALFLUSH

Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to under-perform the HITHINK ROYALFLUSH. But the stock apears to be less risky and, when comparing its historical volatility, Goldman Sachs Group is 1.07 times less risky than HITHINK ROYALFLUSH. The stock trades about -0.39 of its potential returns per unit of risk. The HITHINK ROYALFLUSH is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest  8,378  in HITHINK ROYALFLUSH on June 30, 2022 and sell it today you would lose (556.00)  from holding HITHINK ROYALFLUSH or give up 6.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy81.82%
ValuesDaily Returns

Goldman Sachs Group  vs.  HITHINK ROYALFLUSH

 Performance (%) 
       Timeline  
Goldman Sachs Group 
Goldman Performance
0 of 100
Over the last 90 days Goldman Sachs Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Goldman Sachs is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Goldman Price Channel

HITHINK ROYALFLUSH 
HITHINK Performance
0 of 100
Over the last 90 days HITHINK ROYALFLUSH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

HITHINK Price Channel

Goldman Sachs and HITHINK ROYALFLUSH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Goldman Sachs and HITHINK ROYALFLUSH

The main advantage of trading using opposite Goldman Sachs and HITHINK ROYALFLUSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH will offset losses from the drop in HITHINK ROYALFLUSH's long position.
Goldman Sachs vs. Clearwater Paper Corp
The idea behind Goldman Sachs Group and HITHINK ROYALFLUSH 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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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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