Correlation Between Goldman Sachs and Voya Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Voya Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Government and Voya Global Perspectives, you can compare the effects of market volatilities on Goldman Sachs and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Voya Global.
Diversification Opportunities for Goldman Sachs and Voya Global
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldman and Voya is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Government and Voya Global Perspectives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Perspectives 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 Government are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Perspectives has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Voya Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Voya Global
Assuming the 90 days horizon Goldman Sachs Government is expected to generate 0.68 times more return on investment than Voya Global. However, Goldman Sachs Government is 1.47 times less risky than Voya Global. It trades about 0.12 of its potential returns per unit of risk. Voya Global Perspectives is currently generating about 0.03 per unit of risk. If you would invest 1,292 in Goldman Sachs Government on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Goldman Sachs Government or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Government vs. Voya Global Perspectives
Performance |
| Timeline |
| Goldman Sachs Government |
| Voya Global Perspectives |
Goldman Sachs and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Voya Global
The main advantage of trading using opposite Goldman Sachs and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Goldman Sachs vs. Vanguard Gnma Fund | Goldman Sachs vs. Vanguard Intermediate Term Government | Goldman Sachs vs. Us Government Securities | Goldman Sachs vs. Us Government Securities |
| Voya Global vs. Hsbc Government Money | Voya Global vs. Aig Government Money | Voya Global vs. Goldman Sachs Government | Voya Global vs. Lord Abbett Government |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |