Correlation Between Goldman Sachs and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Goldman Sachs and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Voya Intermediate.
Diversification Opportunities for Goldman Sachs and Voya Intermediate
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GOLDMAN and Voya is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Voya Intermediate go up and down completely randomly.
Pair Corralation between Goldman Sachs and Voya Intermediate
Assuming the 90 days horizon Goldman Sachs Short is expected to generate 0.48 times more return on investment than Voya Intermediate. However, Goldman Sachs Short is 2.07 times less risky than Voya Intermediate. It trades about 0.11 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about -0.03 per unit of risk. If you would invest 889.00 in Goldman Sachs Short on September 4, 2024 and sell it today you would earn a total of 81.00 from holding Goldman Sachs Short or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.26% |
| Values | Daily Returns |
Goldman Sachs Short vs. Voya Intermediate Bond
Performance |
| Timeline |
| Goldman Sachs Short |
| Voya Intermediate Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Voya Intermediate
The main advantage of trading using opposite Goldman Sachs and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate'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 |
| Voya Intermediate vs. Great West Goldman Sachs | Voya Intermediate vs. Franklin Gold Precious | Voya Intermediate vs. Goldman Sachs Short | Voya Intermediate vs. Gold And Precious |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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