Correlation Between Goldman Sachs and Aam Select
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aam Select 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 Aam Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Mid and Aam Select Income, you can compare the effects of market volatilities on Goldman Sachs and Aam Select 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 Aam Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aam Select.
Diversification Opportunities for Goldman Sachs and Aam Select
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Aam is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Mid and Aam Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aam Select 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 Mid are associated (or correlated) with Aam Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aam Select Income has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aam Select go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aam Select
Assuming the 90 days horizon Goldman Sachs Mid is expected to generate 2.19 times more return on investment than Aam Select. However, Goldman Sachs is 2.19 times more volatile than Aam Select Income. It trades about 0.08 of its potential returns per unit of risk. Aam Select Income is currently generating about 0.07 per unit of risk. If you would invest 3,123 in Goldman Sachs Mid on August 31, 2024 and sell it today you would earn a total of 876.00 from holding Goldman Sachs Mid or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Goldman Sachs Mid vs. Aam Select Income
Performance |
| Timeline |
| Goldman Sachs Mid |
| Aam Select Income |
Goldman Sachs and Aam Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aam Select
The main advantage of trading using opposite Goldman Sachs and Aam Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aam Select 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 Aam Select will offset losses from the drop in Aam Select's long position.| Goldman Sachs vs. Baillie Gifford Health | Goldman Sachs vs. Delaware Healthcare Fund | Goldman Sachs vs. Health Care Fund | Goldman Sachs vs. Deutsche Health And |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |