Correlation Between Goldman Sachs and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Innovator ETFs 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 Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs ActiveBeta and Innovator ETFs Trust, you can compare the effects of market volatilities on Goldman Sachs and Innovator ETFs 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 Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Innovator ETFs.
Diversification Opportunities for Goldman Sachs and Innovator ETFs
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Innovator is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs ActiveBeta and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust 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 ActiveBeta are associated (or correlated) with Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Innovator ETFs go up and down completely randomly.
Pair Corralation between Goldman Sachs and Innovator ETFs
If you would invest (100.00) in Goldman Sachs ActiveBeta on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Goldman Sachs ActiveBeta or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Goldman Sachs ActiveBeta vs. Innovator ETFs Trust
Performance |
| Timeline |
| Goldman Sachs ActiveBeta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Innovator ETFs Trust |
Goldman Sachs and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Innovator ETFs
The main advantage of trading using opposite Goldman Sachs and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| Goldman Sachs vs. Mackenzie Canadian Equity | Goldman Sachs vs. Mackenzie Large Cap | Goldman Sachs vs. BMO MSCI EAFE | Goldman Sachs vs. BMO Long Federal |
| Innovator ETFs vs. Tidal ETF Trust | Innovator ETFs vs. Capital Group Dividend | Innovator ETFs vs. Dimensional ETF Trust | Innovator ETFs vs. Pacer Developed 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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