Correlation Between Goldman Sachs and Oppenheimer
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Oppenheimer 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 Oppenheimer 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 Oppenheimer Gr Incm, you can compare the effects of market volatilities on Goldman Sachs and Oppenheimer 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 Oppenheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Oppenheimer.
Diversification Opportunities for Goldman Sachs and Oppenheimer
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and Oppenheimer is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Oppenheimer Gr Incm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Gr Incm 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 Oppenheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Gr Incm has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Oppenheimer go up and down completely randomly.
Pair Corralation between Goldman Sachs and Oppenheimer
Assuming the 90 days horizon Goldman Sachs Technology is expected to generate 1.45 times more return on investment than Oppenheimer. However, Goldman Sachs is 1.45 times more volatile than Oppenheimer Gr Incm. It trades about 0.09 of its potential returns per unit of risk. Oppenheimer Gr Incm is currently generating about -0.29 per unit of risk. If you would invest 3,546 in Goldman Sachs Technology on November 27, 2024 and sell it today you would earn a total of 68.00 from holding Goldman Sachs Technology or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Technology vs. Oppenheimer Gr Incm
Performance |
| Timeline |
| Goldman Sachs Technology |
| Oppenheimer Gr Incm |
Goldman Sachs and Oppenheimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Oppenheimer
The main advantage of trading using opposite Goldman Sachs and Oppenheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Oppenheimer 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 Oppenheimer will offset losses from the drop in Oppenheimer's long position.| Goldman Sachs vs. Pace International Emerging | Goldman Sachs vs. Commodities Strategy Fund | Goldman Sachs vs. Pace International Emerging | Goldman Sachs vs. Investec Emerging Markets |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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