Correlation Between Goldman Sachs and Lkcm Aquinas
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Lkcm Aquinas 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 Lkcm Aquinas 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 Lkcm Aquinas Catholic, you can compare the effects of market volatilities on Goldman Sachs and Lkcm Aquinas 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 Lkcm Aquinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Lkcm Aquinas.
Diversification Opportunities for Goldman Sachs and Lkcm Aquinas
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Lkcm is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short Term and Lkcm Aquinas Catholic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Aquinas Catholic 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 Lkcm Aquinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Aquinas Catholic has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Lkcm Aquinas go up and down completely randomly.
Pair Corralation between Goldman Sachs and Lkcm Aquinas
Assuming the 90 days horizon Goldman Sachs is expected to generate 2.09 times less return on investment than Lkcm Aquinas. But when comparing it to its historical volatility, Goldman Sachs Short Term is 8.73 times less risky than Lkcm Aquinas. It trades about 0.22 of its potential returns per unit of risk. Lkcm Aquinas Catholic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,624 in Lkcm Aquinas Catholic on September 3, 2024 and sell it today you would earn a total of 374.00 from holding Lkcm Aquinas Catholic or generate 23.03% 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. Lkcm Aquinas Catholic
Performance |
| Timeline |
| Goldman Sachs Short |
| Lkcm Aquinas Catholic |
Goldman Sachs and Lkcm Aquinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Lkcm Aquinas
The main advantage of trading using opposite Goldman Sachs and Lkcm Aquinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Lkcm Aquinas 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 Lkcm Aquinas will offset losses from the drop in Lkcm Aquinas' long position.| Goldman Sachs vs. Schwab Treasury Money | Goldman Sachs vs. Dws Government Money | Goldman Sachs vs. Lord Abbett Emerging | Goldman Sachs vs. Wt Mutual Fund |
| Lkcm Aquinas vs. American Funds The | Lkcm Aquinas vs. American Funds The | Lkcm Aquinas vs. Growth Fund Of | Lkcm Aquinas vs. Growth Fund Of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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