Correlation Between Goldman Sachs and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Cohen Steers 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 Goldman Sachs and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Financial and Cohen Steers Prefrd, you can compare the effects of market volatilities on Goldman Sachs and Cohen Steers 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 Goldman Sachs with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Cohen Steers.
Diversification Opportunities for Goldman Sachs and Cohen Steers
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Cohen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Cohen Steers Prefrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prefrd and Goldman Sachs 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 Goldman Sachs Financial are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Prefrd has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Cohen Steers go up and down completely randomly.
Pair Corralation between Goldman Sachs and Cohen Steers
Assuming the 90 days horizon Goldman Sachs Financial is expected to generate 77.34 times more return on investment than Cohen Steers. However, Goldman Sachs is 77.34 times more volatile than Cohen Steers Prefrd. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Prefrd is currently generating about 0.07 per unit of risk. If you would invest 376.00 in Goldman Sachs Financial on September 3, 2024 and sell it today you would lose (276.00) from holding Goldman Sachs Financial or give up 73.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.83% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Cohen Steers Prefrd
Performance |
| Timeline |
| Goldman Sachs Financial |
| Cohen Steers Prefrd |
Goldman Sachs and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Cohen Steers
The main advantage of trading using opposite Goldman Sachs and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard 500 Index | Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard Total Stock |
| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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