Correlation Between Astor Long/short and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Astor Long/short 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 Astor Long/short and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Goldman Sachs Growth, you can compare the effects of market volatilities on Astor Long/short 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 Astor Long/short with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Goldman Sachs.
Diversification Opportunities for Astor Long/short and Goldman Sachs
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Goldman is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Goldman Sachs Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Growth and Astor Long/short 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 Astor Longshort 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 Growth has no effect on the direction of Astor Long/short i.e., Astor Long/short and Goldman Sachs go up and down completely randomly.
Pair Corralation between Astor Long/short and Goldman Sachs
Assuming the 90 days horizon Astor Long/short is expected to generate 1.29 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Astor Longshort Fund is 1.74 times less risky than Goldman Sachs. It trades about 0.25 of its potential returns per unit of risk. Goldman Sachs Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,867 in Goldman Sachs Growth on September 4, 2024 and sell it today you would earn a total of 353.00 from holding Goldman Sachs Growth or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Astor Longshort Fund vs. Goldman Sachs Growth
Performance |
| Timeline |
| Astor Long/short |
| Goldman Sachs Growth |
Astor Long/short and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Goldman Sachs
The main advantage of trading using opposite Astor Long/short and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short 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.| Astor Long/short vs. Virtus Seix Government | Astor Long/short vs. Dunham Porategovernment Bond | Astor Long/short vs. Dreyfus Government Cash | Astor Long/short vs. Dws Government Money |
| Goldman Sachs vs. Rbc Short Duration | Goldman Sachs vs. Goldman Sachs Short | Goldman Sachs vs. Astor Longshort Fund | Goldman Sachs vs. Sterling Capital Short |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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