Correlation Between Vast Renewables and Goldman Sachs

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

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

Diversification Opportunities for Vast Renewables and Goldman Sachs

0.38

Correlation Coefficient

Vast Renewables  Goldman Sachs

Weak diversification

The 3 months correlation between Vast and Goldman is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Vast Renewables Limited and Goldman Sachs Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Technology and Vast Renewables 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 Vast Renewables Limited 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 Technology has no effect on the direction of Vast Renewables i.e., Vast Renewables and Goldman Sachs go up and down completely randomly.

Pair Corralation between Vast Renewables and Goldman Sachs

Given the investment horizon of 90 days Vast Renewables Limited is expected to under-perform the Goldman Sachs. In addition to that, Vast Renewables is 17.74 times more volatile than Goldman Sachs Technology. It trades about -0.26 of its total potential returns per unit of risk. Goldman Sachs Technology is currently generating about 0.3 per unit of volatility. If you would invest  3,270  in Goldman Sachs Technology on May 4, 2025 and sell it today you would earn a total of  652.00  from holding Goldman Sachs Technology or generate 19.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	35.48%
Values	Daily Returns

Vast Renewables Limited  vs.  Goldman Sachs Technology

Vast Renewables

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vast Renewables Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Goldman Sachs Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Technology are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vast Renewables and Goldman Sachs

The main advantage of trading using opposite Vast Renewables and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vast Renewables 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 Vast Renewables Limited and Goldman Sachs Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.