Correlation Between Goldman Sachs and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Amg Managers 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 Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Tax Managed and Amg Managers Centersquare, you can compare the effects of market volatilities on Goldman Sachs and Amg Managers 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 Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Amg Managers.
Diversification Opportunities for Goldman Sachs and Amg Managers
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and Amg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Tax Managed and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare 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 Tax Managed are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Amg Managers go up and down completely randomly.
Pair Corralation between Goldman Sachs and Amg Managers
Assuming the 90 days horizon Goldman Sachs Tax Managed is expected to generate 0.79 times more return on investment than Amg Managers. However, Goldman Sachs Tax Managed is 1.27 times less risky than Amg Managers. It trades about 0.08 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.05 per unit of risk. If you would invest 3,149 in Goldman Sachs Tax Managed on December 12, 2024 and sell it today you would earn a total of 1,296 from holding Goldman Sachs Tax Managed or generate 41.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Tax Managed vs. Amg Managers Centersquare
Performance |
| Timeline |
| Goldman Sachs Tax |
| Amg Managers Centersquare |
Goldman Sachs and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Amg Managers
The main advantage of trading using opposite Goldman Sachs and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Goldman Sachs vs. Towpath Technology | ||
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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