Correlation Between Dreyfus Government and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Dreyfus Government 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 Dreyfus Government and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Government Cash and Goldman Sachs Government, you can compare the effects of market volatilities on Dreyfus Government 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 Dreyfus Government with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Government and Goldman Sachs.
Diversification Opportunities for Dreyfus Government and Goldman Sachs
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus and GOLDMAN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Government Cash and Goldman Sachs Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Government and Dreyfus Government 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 Dreyfus Government Cash 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 Government has no effect on the direction of Dreyfus Government i.e., Dreyfus Government and Goldman Sachs go up and down completely randomly.
Pair Corralation between Dreyfus Government and Goldman Sachs
Assuming the 90 days horizon Dreyfus Government Cash is expected to generate 3.28 times more return on investment than Goldman Sachs. However, Dreyfus Government is 3.28 times more volatile than Goldman Sachs Government. It trades about 0.02 of its potential returns per unit of risk. Goldman Sachs Government is currently generating about 0.02 per unit of risk. If you would invest 91.00 in Dreyfus Government Cash on September 2, 2024 and sell it today you would earn a total of 9.00 from holding Dreyfus Government Cash or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.83% |
| Values | Daily Returns |
Dreyfus Government Cash vs. Goldman Sachs Government
Performance |
| Timeline |
| Dreyfus Government Cash |
| Goldman Sachs Government |
Dreyfus Government and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Government and Goldman Sachs
The main advantage of trading using opposite Dreyfus Government and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Government 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.| Dreyfus Government vs. Balanced Fund Investor | Dreyfus Government vs. Aam Select Income | Dreyfus Government vs. Fabxx | Dreyfus Government vs. Falcon Focus Scv |
| Goldman Sachs vs. Oklahoma College Savings | Goldman Sachs vs. Ab Bond Inflation | Goldman Sachs vs. Guidepath Managed Futures | Goldman Sachs vs. Ab Bond Inflation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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