Correlation Between IShares and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both IShares 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 IShares and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IShares and Goldman Sachs Future, you can compare the effects of market volatilities on IShares 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 IShares with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares and Goldman Sachs.
Diversification Opportunities for IShares and Goldman Sachs
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Goldman is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding IShares and Goldman Sachs Future in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Future and IShares 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 IShares 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 Future has no effect on the direction of IShares i.e., IShares and Goldman Sachs go up and down completely randomly.
Pair Corralation between IShares and Goldman Sachs
If you would invest 3,099 in Goldman Sachs Future on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Goldman Sachs Future or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
IShares vs. Goldman Sachs Future
Performance |
| Timeline |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goldman Sachs Future |
IShares and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares and Goldman Sachs
The main advantage of trading using opposite IShares and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 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.| IShares vs. Nexalin Technology | IShares vs. Kilroy Realty Corp | IShares vs. Highwoods Properties | IShares vs. Karat Packaging |
| Goldman Sachs vs. Nexalin Technology | Goldman Sachs vs. Kilroy Realty Corp | Goldman Sachs vs. Highwoods Properties | Goldman Sachs vs. Karat Packaging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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