Correlation Between Goldman Sachs and Aim International
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aim International 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 Aim International 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 Aim International Mutual, you can compare the effects of market volatilities on Goldman Sachs and Aim International 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 Aim International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aim International.
Diversification Opportunities for Goldman Sachs and Aim International
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Goldman and Aim is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Aim International Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim International Mutual 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 Aim International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim International Mutual has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aim International go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aim International
If you would invest 2,246 in Aim International Mutual on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Aim International Mutual or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Aim International Mutual
Performance |
| Timeline |
| Goldman Sachs Financial |
| Aim International Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and Aim International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aim International
The main advantage of trading using opposite Goldman Sachs and Aim International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aim International 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 Aim International will offset losses from the drop in Aim International's 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 |
| Aim International vs. Prudential Jennison Financial | Aim International vs. Davis Financial Fund | Aim International vs. 1919 Financial Services | Aim International vs. Angel Oak 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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