Correlation Between Goldman Sachs and International Fund
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and International Fund 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 International Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs International and International Fund International, you can compare the effects of market volatilities on Goldman Sachs and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and International Fund.
Diversification Opportunities for Goldman Sachs and International Fund
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GOLDMAN and International is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 International are associated (or correlated) with International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and International Fund go up and down completely randomly.
Pair Corralation between Goldman Sachs and International Fund
Assuming the 90 days horizon Goldman Sachs International is expected to under-perform the International Fund. In addition to that, Goldman Sachs is 1.21 times more volatile than International Fund International. It trades about -0.08 of its total potential returns per unit of risk. International Fund International is currently generating about 0.0 per unit of volatility. If you would invest 3,711 in International Fund International on August 29, 2024 and sell it today you would lose (1.00) from holding International Fund International or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Goldman Sachs International vs. International Fund Internation
Performance |
| Timeline |
| Goldman Sachs Intern |
| International Fund |
Goldman Sachs and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and International Fund
The main advantage of trading using opposite Goldman Sachs and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund's long position.| Goldman Sachs vs. Goldman Sachs International | Goldman Sachs vs. HUMANA INC | Goldman Sachs vs. Aquagold International | Goldman Sachs vs. Barloworld Ltd ADR |
| International Fund vs. Large Cap Growth | International Fund vs. Parnassus Mid Cap | International Fund vs. Parnassus E Equity | International Fund vs. Doubleline Total Return |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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