Correlation Between Angel Oak and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Multi Strategy and Goldman Sachs International, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Goldman Sachs.
Diversification Opportunities for Angel Oak and Goldman Sachs
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Goldman is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Goldman Sachs International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Intern and Angel Oak 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 Angel Oak Multi Strategy 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 Intern has no effect on the direction of Angel Oak i.e., Angel Oak and Goldman Sachs go up and down completely randomly.
Pair Corralation between Angel Oak and Goldman Sachs
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.17 times more return on investment than Goldman Sachs. However, Angel Oak Multi Strategy is 5.86 times less risky than Goldman Sachs. It trades about 0.09 of its potential returns per unit of risk. Goldman Sachs International is currently generating about -0.09 per unit of risk. If you would invest 856.00 in Angel Oak Multi Strategy on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Angel Oak Multi Strategy or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Goldman Sachs International
Performance |
| Timeline |
| Angel Oak Multi |
| Goldman Sachs Intern |
Angel Oak and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Goldman Sachs
The main advantage of trading using opposite Angel Oak and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Calvert Developed Market | Angel Oak vs. Origin Emerging Markets | Angel Oak vs. Aqr Sustainable Long Short | Angel Oak vs. Vanguard Developed Markets |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |