Correlation Between GOLDMAN and XXL Energy

Can any of the company-specific risk be diversified away by investing in both GOLDMAN and XXL Energy 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 and XXL Energy 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 XXL Energy Corp, you can compare the effects of market volatilities on GOLDMAN and XXL Energy 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 with a short position of XXL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDMAN and XXL Energy.

Diversification Opportunities for GOLDMAN and XXL Energy

-0.46

Correlation Coefficient

GOLDMAN  XXL Energy

Very good diversification

The 3 months correlation between GOLDMAN and XXL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS GROUP and XXL Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XXL Energy Corp and GOLDMAN 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 XXL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XXL Energy Corp has no effect on the direction of GOLDMAN i.e., GOLDMAN and XXL Energy go up and down completely randomly.

Pair Corralation between GOLDMAN and XXL Energy

If you would invest  10,206  in GOLDMAN SACHS GROUP on March 2, 2025 and sell it today you would earn a total of  551.00  from holding GOLDMAN SACHS GROUP or generate 5.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	36.36%
Values	Daily Returns

GOLDMAN SACHS GROUP  vs.  XXL Energy Corp

GOLDMAN SACHS GROUP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDMAN SACHS GROUP are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GOLDMAN sustained solid returns over the last few months and may actually be approaching a breakup point.

XXL Energy Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in XXL Energy Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, XXL Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GOLDMAN and XXL Energy

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

The idea behind GOLDMAN SACHS GROUP and XXL Energy Corp 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.