Correlation Between Goldman Sachs and Ashmore Emerging
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ashmore Emerging 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 Ashmore Emerging 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 Ashmore Emerging Markets, you can compare the effects of market volatilities on Goldman Sachs and Ashmore Emerging 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 Ashmore Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ashmore Emerging.
Diversification Opportunities for Goldman Sachs and Ashmore Emerging
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goldman and Ashmore is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Ashmore Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Emerging Markets 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 Ashmore Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Emerging Markets has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ashmore Emerging go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ashmore Emerging
Assuming the 90 days horizon Goldman Sachs Financial is expected to generate 97.24 times more return on investment than Ashmore Emerging. However, Goldman Sachs is 97.24 times more volatile than Ashmore Emerging Markets. It trades about 0.06 of its potential returns per unit of risk. Ashmore Emerging Markets is currently generating about 0.1 per unit of risk. If you would invest 369.00 in Goldman Sachs Financial on August 26, 2024 and sell it today you would lose (269.00) from holding Goldman Sachs Financial or give up 72.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.03% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Ashmore Emerging Markets
Performance |
| Timeline |
| Goldman Sachs Financial |
| Ashmore Emerging Markets |
Goldman Sachs and Ashmore Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ashmore Emerging
The main advantage of trading using opposite Goldman Sachs and Ashmore Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ashmore Emerging 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 Ashmore Emerging will offset losses from the drop in Ashmore Emerging's long position.| Goldman Sachs vs. Pace High Yield | Goldman Sachs vs. Goldman Sachs High | Goldman Sachs vs. Alliancebernstein Global High | Goldman Sachs vs. Ab High Income |
| Ashmore Emerging vs. Gabelli Global Financial | Ashmore Emerging vs. John Hancock Financial | Ashmore Emerging vs. 1919 Financial Services | Ashmore Emerging vs. Goldman Sachs Financial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |