Correlation Between Goldman Sachs and Ab New
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ab New 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 Ab New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Technology and Ab New York, you can compare the effects of market volatilities on Goldman Sachs and Ab New 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 Ab New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ab New.
Diversification Opportunities for Goldman Sachs and Ab New
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldman and ANYCX is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Ab New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab New York 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 Technology are associated (or correlated) with Ab New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab New York has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ab New go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ab New
Assuming the 90 days horizon Goldman Sachs Technology is expected to generate 6.91 times more return on investment than Ab New. However, Goldman Sachs is 6.91 times more volatile than Ab New York. It trades about 0.1 of its potential returns per unit of risk. Ab New York is currently generating about 0.07 per unit of risk. If you would invest 2,755 in Goldman Sachs Technology on September 14, 2024 and sell it today you would earn a total of 1,001 from holding Goldman Sachs Technology or generate 36.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Technology vs. Ab New York
Performance |
| Timeline |
| Goldman Sachs Technology |
| Ab New York |
Goldman Sachs and Ab New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ab New
The main advantage of trading using opposite Goldman Sachs and Ab New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ab New 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 Ab New will offset losses from the drop in Ab New's long position.| Goldman Sachs vs. Dreyfus Natural Resources | Goldman Sachs vs. Oil Gas Ultrasector | Goldman Sachs vs. Adams Natural Resources | Goldman Sachs vs. Icon Natural Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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