Correlation Between Goldman Sachs and AIM Treasurers

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

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

Diversification Opportunities for Goldman Sachs and AIM Treasurers

0.0

Correlation Coefficient

Goldman Sachs AIM Treasurers

Pay attention - limited upside

The 3 months correlation between Goldman and IPVXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Access and AIM Treasurers Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Treasurers Series 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 Access are associated (or correlated) with AIM Treasurers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Treasurers Series has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and AIM Treasurers go up and down completely randomly.

Pair Corralation between Goldman Sachs and AIM Treasurers

If you would invest  9,963  in Goldman Sachs Access on December 29, 2022 and sell it today you would earn a total of  52.00  from holding Goldman Sachs Access or generate 0.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Goldman Sachs Access  vs.  AIM Treasurers Series

Goldman Sachs Access

Goldman Performance

39 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Access are ranked lower than 39 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward indicators, Goldman Sachs is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

AIM Treasurers Series

IPVXX Performance

0 of 100

Over the last 90 days AIM Treasurers Series has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, AIM Treasurers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Goldman Sachs and AIM Treasurers

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

	Goldman Sachs vs. Goldman Sachs Access
	Goldman Sachs vs. Goldman Sachs Access
	Goldman Sachs vs. Goldman Sachs Access
	Goldman Sachs vs. Goldman Sachs Access

The idea behind Goldman Sachs Access and AIM Treasurers Series 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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	AIM Treasurers vs. BLACK OAK EMERGING

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.