Correlation Between Goldman Sachs and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Amg Southernsun 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 Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Esg and Amg Southernsun Equity, you can compare the effects of market volatilities on Goldman Sachs and Amg Southernsun 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 Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Amg Southernsun.
Diversification Opportunities for Goldman Sachs and Amg Southernsun
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and Amg is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Esg and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Equity 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 Esg are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Amg Southernsun go up and down completely randomly.
Pair Corralation between Goldman Sachs and Amg Southernsun
Assuming the 90 days horizon Goldman Sachs is expected to generate 2.06 times less return on investment than Amg Southernsun. But when comparing it to its historical volatility, Goldman Sachs Esg is 1.35 times less risky than Amg Southernsun. It trades about 0.02 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,373 in Amg Southernsun Equity on September 3, 2024 and sell it today you would earn a total of 201.00 from holding Amg Southernsun Equity or generate 14.64% 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 Esg vs. Amg Southernsun Equity
Performance |
| Timeline |
| Goldman Sachs Esg |
| Amg Southernsun Equity |
Goldman Sachs and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Amg Southernsun
The main advantage of trading using opposite Goldman Sachs and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Amg Southernsun 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 Southernsun will offset losses from the drop in Amg Southernsun's long position.| Goldman Sachs vs. Prudential High Yield | Goldman Sachs vs. Goldman Sachs High | Goldman Sachs vs. Msift High Yield | Goldman Sachs vs. Alpine High Yield |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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