Correlation Between Goldman Sachs and Optimum Fixed
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Optimum Fixed 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 Optimum Fixed 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 Optimum Fixed Income, you can compare the effects of market volatilities on Goldman Sachs and Optimum Fixed 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 Optimum Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Optimum Fixed.
Diversification Opportunities for Goldman Sachs and Optimum Fixed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Optimum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Financial and Optimum Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimum Fixed Income 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 Optimum Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimum Fixed Income has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Optimum Fixed go up and down completely randomly.
Pair Corralation between Goldman Sachs and Optimum Fixed
If you would invest 100.00 in Goldman Sachs Financial on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Goldman Sachs Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Goldman Sachs Financial vs. Optimum Fixed Income
Performance |
| Timeline |
| Goldman Sachs Financial |
| Optimum Fixed Income |
Goldman Sachs and Optimum Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Optimum Fixed
The main advantage of trading using opposite Goldman Sachs and Optimum Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Optimum Fixed 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 Optimum Fixed will offset losses from the drop in Optimum Fixed's long position.| Goldman Sachs vs. Balanced Allocation Fund | Goldman Sachs vs. Transamerica Asset Allocation | Goldman Sachs vs. Tax Managed Large Cap | Goldman Sachs vs. Legg Mason Global |
| Optimum Fixed vs. Financial Industries Fund | Optimum Fixed vs. Goldman Sachs Financial | Optimum Fixed vs. Putnam Global Financials | Optimum Fixed vs. Mesirow Financial Small |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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