Correlation Between Goldman Sachs and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Dunham Real 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 Dunham Real 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 Dunham Real Estate, you can compare the effects of market volatilities on Goldman Sachs and Dunham Real 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 Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Dunham Real.
Diversification Opportunities for Goldman Sachs and Dunham Real
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GOLDMAN and Dunham is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate 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 Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Dunham Real go up and down completely randomly.
Pair Corralation between Goldman Sachs and Dunham Real
Assuming the 90 days horizon Goldman Sachs is expected to generate 2.62 times less return on investment than Dunham Real. But when comparing it to its historical volatility, Goldman Sachs Short is 7.89 times less risky than Dunham Real. It trades about 0.11 of its potential returns per unit of risk. Dunham Real Estate is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Dunham Real Estate on September 3, 2024 and sell it today you would earn a total of 267.00 from holding Dunham Real Estate or generate 21.16% 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 Short vs. Dunham Real Estate
Performance |
| Timeline |
| Goldman Sachs Short |
| Dunham Real Estate |
Goldman Sachs and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Dunham Real
The main advantage of trading using opposite Goldman Sachs and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Dunham Real 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 Dunham Real will offset losses from the drop in Dunham Real's long position.| Goldman Sachs vs. SPACE | Goldman Sachs vs. Bayview Acquisition Corp | Goldman Sachs vs. Ampleforth | Goldman Sachs vs. ionet |
| Dunham Real vs. Sterling Capital Short | Dunham Real vs. Old Westbury Short Term | Dunham Real vs. Goldman Sachs Short | Dunham Real vs. Jhancock Short Duration |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |