Correlation Between Goldman Sachs and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Allianzgi Technology 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 Allianzgi Technology 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 Allianzgi Technology Fund, you can compare the effects of market volatilities on Goldman Sachs and Allianzgi Technology 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 Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Allianzgi Technology.
Diversification Opportunities for Goldman Sachs and Allianzgi Technology
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Allianzgi is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology 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 Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Goldman Sachs and Allianzgi Technology
Assuming the 90 days horizon Goldman Sachs Technology is expected to generate 0.91 times more return on investment than Allianzgi Technology. However, Goldman Sachs Technology is 1.1 times less risky than Allianzgi Technology. It trades about 0.3 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.25 per unit of risk. If you would invest 3,328 in Goldman Sachs Technology on September 1, 2024 and sell it today you would earn a total of 223.00 from holding Goldman Sachs Technology or generate 6.7% 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 Technology vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Goldman Sachs Technology |
| Allianzgi Technology |
Goldman Sachs and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Allianzgi Technology
The main advantage of trading using opposite Goldman Sachs and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Allianzgi Technology 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.| Goldman Sachs vs. Ep Emerging Markets | Goldman Sachs vs. Black Oak Emerging | Goldman Sachs vs. Artisan Emerging Markets | Goldman Sachs vs. Investec Emerging Markets |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |