Correlation Between Goldman Sachs and Federated Total
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Federated Total 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 Federated Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Emerging and Federated Total Return, you can compare the effects of market volatilities on Goldman Sachs and Federated Total 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 Federated Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Federated Total.
Diversification Opportunities for Goldman Sachs and Federated Total
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GOLDMAN and Federated is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Emerging and Federated Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Total Return 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 Emerging are associated (or correlated) with Federated Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Total Return has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Federated Total go up and down completely randomly.
Pair Corralation between Goldman Sachs and Federated Total
Assuming the 90 days horizon Goldman Sachs Emerging is expected to generate 2.85 times more return on investment than Federated Total. However, Goldman Sachs is 2.85 times more volatile than Federated Total Return. It trades about 0.03 of its potential returns per unit of risk. Federated Total Return is currently generating about 0.06 per unit of risk. If you would invest 840.00 in Goldman Sachs Emerging on September 1, 2024 and sell it today you would earn a total of 36.00 from holding Goldman Sachs Emerging or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Goldman Sachs Emerging vs. Federated Total Return
Performance |
| Timeline |
| Goldman Sachs Emerging |
| Federated Total Return |
Goldman Sachs and Federated Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Federated Total
The main advantage of trading using opposite Goldman Sachs and Federated Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Federated Total 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 Federated Total will offset losses from the drop in Federated Total's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Centrated |
| Federated Total vs. Goldman Sachs Emerging | Federated Total vs. Transamerica Emerging Markets | Federated Total vs. Ab All Market | Federated Total vs. Aqr Long Short Equity |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |