Correlation Between Goldman Sachs and Dreyfus Select
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Dreyfus 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 Dreyfus Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Short and Dreyfus Select Managers, you can compare the effects of market volatilities on Goldman Sachs and Dreyfus 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 Dreyfus Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Dreyfus Select.
Diversification Opportunities for Goldman Sachs and Dreyfus Select
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goldman and Dreyfus is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Dreyfus Select Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Select Managers 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 Short are associated (or correlated) with Dreyfus Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Select Managers has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Dreyfus Select go up and down completely randomly.
Pair Corralation between Goldman Sachs and Dreyfus Select
Assuming the 90 days horizon Goldman Sachs is expected to generate 3.05 times less return on investment than Dreyfus Select. But when comparing it to its historical volatility, Goldman Sachs Short is 6.75 times less risky than Dreyfus Select. It trades about 0.12 of its potential returns per unit of risk. Dreyfus Select Managers is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,738 in Dreyfus Select Managers on September 12, 2024 and sell it today you would earn a total of 417.00 from holding Dreyfus Select Managers or generate 23.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.98% |
| Values | Daily Returns |
Goldman Sachs Short vs. Dreyfus Select Managers
Performance |
| Timeline |
| Goldman Sachs Short |
| Dreyfus Select Managers |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and Dreyfus Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Dreyfus Select
The main advantage of trading using opposite Goldman Sachs and Dreyfus Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Dreyfus 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 Dreyfus Select will offset losses from the drop in Dreyfus Select's long position.| Goldman Sachs vs. Blackrock Health Sciences | Goldman Sachs vs. Hartford Healthcare Hls | Goldman Sachs vs. Deutsche Health And | Goldman Sachs vs. Allianzgi Health Sciences |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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