Correlation Between Goldman Sachs and Northern Trust
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Northern Trust 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 Northern Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Future and Northern Trust, you can compare the effects of market volatilities on Goldman Sachs and Northern Trust 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 Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Northern Trust.
Diversification Opportunities for Goldman Sachs and Northern Trust
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Northern is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern 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 Future are associated (or correlated) with Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Northern Trust go up and down completely randomly.
Pair Corralation between Goldman Sachs and Northern Trust
If you would invest 3,590 in Goldman Sachs Future on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Goldman Sachs Future or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Goldman Sachs Future vs. Northern Trust
Performance |
| Timeline |
| Goldman Sachs Future |
| Northern Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Northern Trust
The main advantage of trading using opposite Goldman Sachs and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust's long position.| Goldman Sachs vs. Goldman Sachs ETF | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. Goldman Sachs Future |
| Northern Trust vs. FT Vest Equity | Northern Trust vs. Zillow Group Class | Northern Trust vs. Northern Lights | Northern Trust vs. VanEck Vectors Moodys |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |