Correlation Between Goldman Sachs and The Us
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and The Us 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 The Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Government and The Government Fixed, you can compare the effects of market volatilities on Goldman Sachs and The Us 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 The Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and The Us.
Diversification Opportunities for Goldman Sachs and The Us
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and The is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Government and The Government Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Government Fixed 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 Government are associated (or correlated) with The Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Government Fixed has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and The Us go up and down completely randomly.
Pair Corralation between Goldman Sachs and The Us
Assuming the 90 days horizon Goldman Sachs Government is expected to under-perform the The Us. In addition to that, Goldman Sachs is 1.08 times more volatile than The Government Fixed. It trades about -0.21 of its total potential returns per unit of risk. The Government Fixed is currently generating about -0.2 per unit of volatility. If you would invest 846.00 in The Government Fixed on January 25, 2024 and sell it today you would lose (14.00) from holding The Government Fixed or give up 1.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Government vs. The Government Fixed
Performance |
Timeline |
Goldman Sachs Government |
Government Fixed |
Goldman Sachs and The Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and The Us
The main advantage of trading using opposite Goldman Sachs and The Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, The Us 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 The Us will offset losses from the drop in The Us' long position.Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 the Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |