Correlation Between Goldman Sachs and Aqr Long
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aqr Long 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 Aqr Long 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 Aqr Long Short Equity, you can compare the effects of market volatilities on Goldman Sachs and Aqr Long 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 Aqr Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aqr Long.
Diversification Opportunities for Goldman Sachs and Aqr Long
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOLDMAN and Aqr is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short 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 Aqr Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aqr Long go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aqr Long
Assuming the 90 days horizon Goldman Sachs is expected to generate 5.38 times less return on investment than Aqr Long. But when comparing it to its historical volatility, Goldman Sachs Short is 3.12 times less risky than Aqr Long. It trades about 0.14 of its potential returns per unit of risk. Aqr Long Short Equity is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Aqr Long Short Equity on September 4, 2024 and sell it today you would earn a total of 544.00 from holding Aqr Long Short Equity or generate 49.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Short vs. Aqr Long Short Equity
Performance |
| Timeline |
| Goldman Sachs Short |
| Aqr Long Short |
Goldman Sachs and Aqr Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aqr Long
The main advantage of trading using opposite Goldman Sachs and Aqr Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aqr Long 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 Aqr Long will offset losses from the drop in Aqr Long's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| Aqr Long vs. Salient Mlp Energy | Aqr Long vs. Gmo Resources | Aqr Long vs. Firsthand Alternative Energy | Aqr Long vs. Franklin Natural Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |