Correlation Between Goldman Sachs and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Access and Angel Oak UltraShort, you can compare the effects of market volatilities on Goldman Sachs and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Angel Oak.
Diversification Opportunities for Goldman Sachs and Angel Oak
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Goldman and Angel is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Access and Angel Oak UltraShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak UltraShort 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 Access are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak UltraShort has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Angel Oak go up and down completely randomly.
Pair Corralation between Goldman Sachs and Angel Oak
Given the investment horizon of 90 days Goldman Sachs is expected to generate 1.28 times less return on investment than Angel Oak. But when comparing it to its historical volatility, Goldman Sachs Access is 1.96 times less risky than Angel Oak. It trades about 0.82 of its potential returns per unit of risk. Angel Oak UltraShort is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 5,051 in Angel Oak UltraShort on November 18, 2024 and sell it today you would earn a total of 70.00 from holding Angel Oak UltraShort or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Access vs. Angel Oak UltraShort
Performance |
| Timeline |
| Goldman Sachs Access |
| Angel Oak UltraShort |
Goldman Sachs and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Angel Oak
The main advantage of trading using opposite Goldman Sachs and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Goldman Sachs vs. Goldman Sachs Access | Goldman Sachs vs. SPDR Bloomberg 1 3 | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. iShares Ultra Short Term |
| Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. Ab Tax Aware Short | Angel Oak vs. BondBloxx ETF Trust |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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