Correlation Between Mercurity Fintech and Goldman Sachs

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

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

Diversification Opportunities for Mercurity Fintech and Goldman Sachs

0.39

Correlation Coefficient

Mercurity Fintech  Goldman Sachs

Weak diversification

The 3 months correlation between Mercurity and Goldman is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs and Mercurity Fintech 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 Mercurity Fintech Holding 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 has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Goldman Sachs go up and down completely randomly.

Pair Corralation between Mercurity Fintech and Goldman Sachs

Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 22.05 times more return on investment than Goldman Sachs. However, Mercurity Fintech is 22.05 times more volatile than The Goldman Sachs. It trades about 0.01 of its potential returns per unit of risk. The Goldman Sachs is currently generating about -0.09 per unit of risk. If you would invest  685.00  in Mercurity Fintech Holding on May 6, 2025 and sell it today you would lose (272.00) from holding Mercurity Fintech Holding or give up 39.71% of portfolio value over 90 days.

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

Mercurity Fintech Holding  vs.  The Goldman Sachs

Mercurity Fintech Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mercurity Fintech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly weak technical and fundamental indicators, Mercurity Fintech may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Goldman Sachs

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Goldman Sachs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Goldman Sachs is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mercurity Fintech and Goldman Sachs

The main advantage of trading using opposite Mercurity Fintech and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech 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 Mercurity Fintech Holding and The Goldman Sachs 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.