Correlation Between Goldman Sachs and Ubs International
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ubs International 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 Ubs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Growth and Ubs International Sustainable, you can compare the effects of market volatilities on Goldman Sachs and Ubs International 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 Ubs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ubs International.
Diversification Opportunities for Goldman Sachs and Ubs International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOLDMAN and Ubs is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Growth and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International 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 Growth are associated (or correlated) with Ubs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ubs International go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ubs International
Assuming the 90 days horizon Goldman Sachs Growth is expected to generate 2.11 times more return on investment than Ubs International. However, Goldman Sachs is 2.11 times more volatile than Ubs International Sustainable. It trades about 0.52 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about 0.11 per unit of risk. If you would invest 2,088 in Goldman Sachs Growth on September 5, 2024 and sell it today you would earn a total of 303.00 from holding Goldman Sachs Growth or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goldman Sachs Growth vs. Ubs International Sustainable
Performance |
| Timeline |
| Goldman Sachs Growth |
| Ubs International |
Goldman Sachs and Ubs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ubs International
The main advantage of trading using opposite Goldman Sachs and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ubs International 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 Ubs International will offset losses from the drop in Ubs International'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 |
| Ubs International vs. Pace Smallmedium Value | Ubs International vs. Pace International Equity | Ubs International vs. Ubs Allocation Fund | Ubs International vs. Ubs Allocation Fund |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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