Correlation Between Goldman Sachs and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aqr Managed 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 Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Mlp and Aqr Managed Futures, you can compare the effects of market volatilities on Goldman Sachs and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aqr Managed.
Diversification Opportunities for Goldman Sachs and Aqr Managed
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Aqr is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Mlp and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Mlp are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aqr Managed go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aqr Managed
Assuming the 90 days horizon Goldman Sachs Mlp is expected to generate 0.94 times more return on investment than Aqr Managed. However, Goldman Sachs Mlp is 1.06 times less risky than Aqr Managed. It trades about 0.11 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.02 per unit of risk. If you would invest 2,296 in Goldman Sachs Mlp on September 5, 2024 and sell it today you would earn a total of 1,308 from holding Goldman Sachs Mlp or generate 56.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Goldman Sachs Mlp vs. Aqr Managed Futures
Performance |
| Timeline |
| Goldman Sachs Mlp |
| Aqr Managed Futures |
Goldman Sachs and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aqr Managed
The main advantage of trading using opposite Goldman Sachs and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Goldman Sachs vs. Aqr Managed Futures | Goldman Sachs vs. Ab Bond Inflation | Goldman Sachs vs. Fidelity Sai Inflationfocused | Goldman Sachs vs. Arrow Managed Futures |
| Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr Large Cap | Aqr Managed vs. Aqr International Defensive | Aqr Managed vs. Aqr International Defensive |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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