Correlation Between Goldman Sachs and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aim Investment 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 Investment 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 Aim Investment Secs, you can compare the effects of market volatilities on Goldman Sachs and Aim Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aim Investment.
Diversification Opportunities for Goldman Sachs and Aim Investment
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Aim is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Emerging and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aim Investment go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aim Investment
If you would invest 100.00 in Aim Investment Secs on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Aim Investment Secs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Emerging vs. Aim Investment Secs
Performance |
| Timeline |
| Goldman Sachs Emerging |
| Aim Investment Secs |
Goldman Sachs and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aim Investment
The main advantage of trading using opposite Goldman Sachs and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aim Investment 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 Investment will offset losses from the drop in Aim Investment's long position.| Goldman Sachs vs. Massmutual Select Diversified | Goldman Sachs vs. Evaluator Conservative Rms | Goldman Sachs vs. Prudential Core Conservative | Goldman Sachs vs. Jhancock Diversified Macro |
| Aim Investment vs. Scharf Global Opportunity | Aim Investment vs. Mirova Global Green | Aim Investment vs. T Rowe Price | Aim Investment vs. Volumetric Fund Volumetric |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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