Correlation Between Dunham Large and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Dunham Large 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 Dunham Large and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Goldman Sachs Capital, you can compare the effects of market volatilities on Dunham Large 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 Dunham Large with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Goldman Sachs.
Diversification Opportunities for Dunham Large and Goldman Sachs
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Goldman is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Goldman Sachs Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Capital and Dunham Large 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 Dunham Large Cap 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 Capital has no effect on the direction of Dunham Large i.e., Dunham Large and Goldman Sachs go up and down completely randomly.
Pair Corralation between Dunham Large and Goldman Sachs
Assuming the 90 days horizon Dunham Large Cap is expected to generate 0.19 times more return on investment than Goldman Sachs. However, Dunham Large Cap is 5.2 times less risky than Goldman Sachs. It trades about -0.17 of its potential returns per unit of risk. Goldman Sachs Capital is currently generating about -0.15 per unit of risk. If you would invest 2,108 in Dunham Large Cap on September 14, 2024 and sell it today you would lose (32.00) from holding Dunham Large Cap or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Goldman Sachs Capital
Performance |
| Timeline |
| Dunham Large Cap |
| Goldman Sachs Capital |
Dunham Large and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Goldman Sachs
The main advantage of trading using opposite Dunham Large and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large 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.| Dunham Large vs. Allianzgi Convertible Income | Dunham Large vs. Calamos Dynamic Convertible | Dunham Large vs. Absolute Convertible Arbitrage | Dunham Large vs. Fidelity Sai Convertible |
| Goldman Sachs vs. Dunham Large Cap | Goldman Sachs vs. Pace Large Value | Goldman Sachs vs. Qs Large Cap | Goldman Sachs vs. Jhancock Disciplined Value |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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