Correlation Between Goldman Sachs and Bitwise 10

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Bitwise 10 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 Bitwise 10 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goldman Sachs International and Bitwise 10 Crypto, you can compare the effects of market volatilities on Goldman Sachs and Bitwise 10 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 Bitwise 10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Bitwise 10.

Diversification Opportunities for Goldman Sachs and Bitwise 10

0.83

Correlation Coefficient

Goldman Sachs  Bitwise 10

Very poor diversification

The 3 months correlation between Goldman and Bitwise is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and Bitwise 10 Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise 10 Crypto 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 International are associated (or correlated) with Bitwise 10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise 10 Crypto has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Bitwise 10 go up and down completely randomly.

Pair Corralation between Goldman Sachs and Bitwise 10

Assuming the 90 days horizon Goldman Sachs is expected to generate 3.7 times less return on investment than Bitwise 10. But when comparing it to its historical volatility, Goldman Sachs International is 3.44 times less risky than Bitwise 10. It trades about 0.21 of its potential returns per unit of risk. Bitwise 10 Crypto is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  5,570  in Bitwise 10 Crypto on April 25, 2025 and sell it today you would earn a total of  2,009  from holding Bitwise 10 Crypto or generate 36.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Goldman Sachs International  vs.  Bitwise 10 Crypto

Goldman Sachs Intern

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs International are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bitwise 10 Crypto

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise 10 Crypto are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady basic indicators, Bitwise 10 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Goldman Sachs and Bitwise 10

The main advantage of trading using opposite Goldman Sachs and Bitwise 10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Bitwise 10 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 Bitwise 10 will offset losses from the drop in Bitwise 10's long position.

The idea behind Goldman Sachs International and Bitwise 10 Crypto 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.