Correlation Between Barings Us and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Barings Us 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 Barings Us and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Goldman Sachs Large, you can compare the effects of market volatilities on Barings Us 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 Barings Us with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Goldman Sachs.
Diversification Opportunities for Barings Us and Goldman Sachs
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Goldman is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Goldman Sachs Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Large and Barings Us 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 Barings High Yield 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 Large has no effect on the direction of Barings Us i.e., Barings Us and Goldman Sachs go up and down completely randomly.
Pair Corralation between Barings Us and Goldman Sachs
Assuming the 90 days horizon Barings Us is expected to generate 6.47 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Barings High Yield is 3.8 times less risky than Goldman Sachs. It trades about 0.14 of its potential returns per unit of risk. Goldman Sachs Large is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,312 in Goldman Sachs Large on November 7, 2024 and sell it today you would earn a total of 74.00 from holding Goldman Sachs Large or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Goldman Sachs Large
Performance |
| Timeline |
| Barings High Yield |
| Goldman Sachs Large |
Barings Us and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Goldman Sachs
The main advantage of trading using opposite Barings Us and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us 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.| Barings Us vs. Baron Health Care | Barings Us vs. Blackrock Health Sciences | Barings Us vs. The Hartford Healthcare | Barings Us vs. Hartford Healthcare Hls |
| Goldman Sachs vs. Columbia Convertible Securities | Goldman Sachs vs. Gabelli Convertible And | Goldman Sachs vs. Calamos Dynamic Convertible | Goldman Sachs vs. Lord Abbett Convertible |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |