Correlation Between Akre Focus and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Akre Focus 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 Akre Focus and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akre Focus Fund and Goldman Sachs Gqg, you can compare the effects of market volatilities on Akre Focus 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 Akre Focus with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akre Focus and Goldman Sachs.
Diversification Opportunities for Akre Focus and Goldman Sachs
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akre and Goldman is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Akre Focus Fund and Goldman Sachs Gqg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Gqg and Akre Focus 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 Akre Focus Fund 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 Gqg has no effect on the direction of Akre Focus i.e., Akre Focus and Goldman Sachs go up and down completely randomly.
Pair Corralation between Akre Focus and Goldman Sachs
Assuming the 90 days horizon Akre Focus Fund is expected to generate 1.13 times more return on investment than Goldman Sachs. However, Akre Focus is 1.13 times more volatile than Goldman Sachs Gqg. It trades about 0.09 of its potential returns per unit of risk. Goldman Sachs Gqg is currently generating about 0.08 per unit of risk. If you would invest 4,759 in Akre Focus Fund on September 12, 2024 and sell it today you would earn a total of 2,232 from holding Akre Focus Fund or generate 46.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akre Focus Fund vs. Goldman Sachs Gqg
Performance |
| Timeline |
| Akre Focus Fund |
| Goldman Sachs Gqg |
Akre Focus and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akre Focus and Goldman Sachs
The main advantage of trading using opposite Akre Focus and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akre Focus 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.| Akre Focus vs. Akre Focus Fund | Akre Focus vs. Akre Focus Fund | Akre Focus vs. T Rowe Price | Akre Focus vs. Aqr Diversified Arbitrage |
| Goldman Sachs vs. Europacific Growth Fund | Goldman Sachs vs. SCOR PK | Goldman Sachs vs. Morningstar Unconstrained Allocation | Goldman Sachs vs. Thrivent High Yield |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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