Correlation Between Amundi Index and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Amundi Index 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 Amundi Index and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and Goldman Sachs Global, you can compare the effects of market volatilities on Amundi Index 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 Amundi Index with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Goldman Sachs.
Diversification Opportunities for Amundi Index and Goldman Sachs
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and Goldman is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and Goldman Sachs Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Global and Amundi Index 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 Amundi Index Solutions 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 Global has no effect on the direction of Amundi Index i.e., Amundi Index and Goldman Sachs go up and down completely randomly.
Pair Corralation between Amundi Index and Goldman Sachs
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the Goldman Sachs. In addition to that, Amundi Index is 3.38 times more volatile than Goldman Sachs Global. It trades about -0.14 of its total potential returns per unit of risk. Goldman Sachs Global is currently generating about 0.11 per unit of volatility. If you would invest 4,356 in Goldman Sachs Global on August 30, 2024 and sell it today you would earn a total of 26.00 from holding Goldman Sachs Global or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. Goldman Sachs Global
Performance |
| Timeline |
| Amundi Index Solutions |
| Goldman Sachs Global |
Amundi Index and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Goldman Sachs
The main advantage of trading using opposite Amundi Index and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index 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.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| Goldman Sachs vs. Vanguard FTSE Developed | Goldman Sachs vs. Leverage Shares 2x | Goldman Sachs vs. Amundi Index Solutions | Goldman Sachs vs. Amundi Index Solutions |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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