Correlation Between Goldman Sachs and IShares Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and IShares Global 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 IShares Global 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 iShares Global 100, you can compare the effects of market volatilities on Goldman Sachs and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and IShares Global.
Diversification Opportunities for Goldman Sachs and IShares Global
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and IShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and iShares Global 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global 100 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global 100 has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and IShares Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and IShares Global
Given the investment horizon of 90 days Goldman Sachs is expected to generate 1.0 times less return on investment than IShares Global. In addition to that, Goldman Sachs is 1.04 times more volatile than iShares Global 100. It trades about 0.13 of its total potential returns per unit of risk. iShares Global 100 is currently generating about 0.14 per unit of volatility. If you would invest 9,746 in iShares Global 100 on September 1, 2024 and sell it today you would earn a total of 217.00 from holding iShares Global 100 or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goldman Sachs Future vs. iShares Global 100
Performance |
| Timeline |
| Goldman Sachs Future |
| iShares Global 100 |
Goldman Sachs and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and IShares Global
The main advantage of trading using opposite Goldman Sachs and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global'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 |
| IShares Global vs. iShares Europe ETF | IShares Global vs. iShares Global Financials | IShares Global vs. iShares Global Healthcare | IShares Global vs. iShares Global Comm |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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