Correlation Between Goldman Sachs and Matson Money
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Matson Money 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 Matson Money 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 Matson Money Equity, you can compare the effects of market volatilities on Goldman Sachs and Matson Money 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 Matson Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Matson Money.
Diversification Opportunities for Goldman Sachs and Matson Money
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GOLDMAN and Matson is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Growth and Matson Money Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Money 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 Growth are associated (or correlated) with Matson Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Money Equity has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Matson Money go up and down completely randomly.
Pair Corralation between Goldman Sachs and Matson Money
Assuming the 90 days horizon Goldman Sachs Growth is expected to generate 1.05 times more return on investment than Matson Money. However, Goldman Sachs is 1.05 times more volatile than Matson Money Equity. It trades about 0.07 of its potential returns per unit of risk. Matson Money Equity is currently generating about 0.07 per unit of risk. If you would invest 1,660 in Goldman Sachs Growth on September 3, 2024 and sell it today you would earn a total of 719.00 from holding Goldman Sachs Growth or generate 43.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Growth vs. Matson Money Equity
Performance |
| Timeline |
| Goldman Sachs Growth |
| Matson Money Equity |
Goldman Sachs and Matson Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Matson Money
The main advantage of trading using opposite Goldman Sachs and Matson Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Matson Money 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 Matson Money will offset losses from the drop in Matson Money's long position.| Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. T Rowe Price |
| Matson Money vs. Goldman Sachs Growth | Matson Money vs. Small Pany Growth | Matson Money vs. Rational Defensive Growth | Matson Money vs. William Blair Growth |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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