Correlation Between Goldman Sachs and The Hartford
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Short Term and The Hartford Growth, you can compare the effects of market volatilities on Goldman Sachs and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and The Hartford.
Diversification Opportunities for Goldman Sachs and The Hartford
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and The is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short Term and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 Short Term are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and The Hartford go up and down completely randomly.
Pair Corralation between Goldman Sachs and The Hartford
Assuming the 90 days horizon Goldman Sachs is expected to generate 6.26 times less return on investment than The Hartford. But when comparing it to its historical volatility, Goldman Sachs Short Term is 12.1 times less risky than The Hartford. It trades about 0.21 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,715 in The Hartford Growth on November 7, 2024 and sell it today you would earn a total of 3,217 from holding The Hartford Growth or generate 86.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Short Term vs. The Hartford Growth
Performance |
| Timeline |
| Goldman Sachs Short |
| Hartford Growth |
Goldman Sachs and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and The Hartford
The main advantage of trading using opposite Goldman Sachs and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Goldman Sachs vs. Metropolitan West High | Goldman Sachs vs. Transamerica High Yield | Goldman Sachs vs. Pace High Yield | Goldman Sachs vs. The Hartford High |
| The Hartford vs. Guidepath Conservative Income | The Hartford vs. Global Diversified Income | The Hartford vs. Tiaa Cref Lifestyle Conservative | The Hartford vs. Lord Abbett Diversified |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |