Correlation Between Goldman Sachs and Asg Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Asg Global 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 Asg Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Absolute and Asg Global Alternatives, you can compare the effects of market volatilities on Goldman Sachs and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Asg Global.
Diversification Opportunities for Goldman Sachs and Asg Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Asg is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Absolute and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Absolute are associated (or correlated) with Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Asg Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Asg Global
Assuming the 90 days horizon Goldman Sachs Absolute is expected to generate 0.92 times more return on investment than Asg Global. However, Goldman Sachs Absolute is 1.09 times less risky than Asg Global. It trades about 0.1 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.09 per unit of risk. If you would invest 773.00 in Goldman Sachs Absolute on September 12, 2024 and sell it today you would earn a total of 92.00 from holding Goldman Sachs Absolute or generate 11.9% 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 Absolute vs. Asg Global Alternatives
Performance |
| Timeline |
| Goldman Sachs Absolute |
| Asg Global Alternatives |
Goldman Sachs and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Asg Global
The main advantage of trading using opposite Goldman Sachs and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global's long position.| Goldman Sachs vs. Nasdaq 100 Index Fund | Goldman Sachs vs. Rbb Fund | Goldman Sachs vs. Qs Growth Fund | Goldman Sachs vs. T Rowe Price |
| Asg Global vs. Blackrock Alternative Capital | Asg Global vs. Aqr Style Premia | Asg Global vs. Goldman Sachs Absolute | Asg Global vs. Aquagold International |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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