Correlation Between Barclays ETN and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Barclays ETN 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 Barclays ETN and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and Goldman Sachs Access, you can compare the effects of market volatilities on Barclays ETN 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 Barclays ETN with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and Goldman Sachs.
Diversification Opportunities for Barclays ETN and Goldman Sachs
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barclays and Goldman is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and Goldman Sachs Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Access and Barclays ETN 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 Barclays ETN Select 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 Access has no effect on the direction of Barclays ETN i.e., Barclays ETN and Goldman Sachs go up and down completely randomly.
Pair Corralation between Barclays ETN and Goldman Sachs
Given the investment horizon of 90 days Barclays ETN Select is expected to generate 2.81 times more return on investment than Goldman Sachs. However, Barclays ETN is 2.81 times more volatile than Goldman Sachs Access. It trades about 0.2 of its potential returns per unit of risk. Goldman Sachs Access is currently generating about 0.07 per unit of risk. If you would invest 2,019 in Barclays ETN Select on September 2, 2024 and sell it today you would earn a total of 1,009 from holding Barclays ETN Select or generate 49.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays ETN Select vs. Goldman Sachs Access
Performance |
| Timeline |
| Barclays ETN Select |
| Goldman Sachs Access |
Barclays ETN and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and Goldman Sachs
The main advantage of trading using opposite Barclays ETN and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN 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.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
| Goldman Sachs vs. SPDR Bloomberg 1 10 | Goldman Sachs vs. PIMCO Broad TIPS | Goldman Sachs vs. SPDR Portfolio TIPS | Goldman Sachs vs. FlexShares iBoxx 5 Year |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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