Correlation Between Goldman Sachs and EA Series
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on Goldman Sachs and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and EA Series.
Diversification Opportunities for Goldman Sachs and EA Series
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and STXE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Future and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and EA Series go up and down completely randomly.
Pair Corralation between Goldman Sachs and EA Series
Given the investment horizon of 90 days Goldman Sachs Future is expected to generate 0.78 times more return on investment than EA Series. However, Goldman Sachs Future is 1.28 times less risky than EA Series. It trades about 0.11 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.02 per unit of risk. If you would invest 3,307 in Goldman Sachs Future on September 1, 2024 and sell it today you would earn a total of 359.00 from holding Goldman Sachs Future or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Goldman Sachs Future vs. EA Series Trust
Performance |
| Timeline |
| Goldman Sachs Future |
| EA Series Trust |
Goldman Sachs and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and EA Series
The main advantage of trading using opposite Goldman Sachs and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' 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 |
| EA Series vs. Xtrackers MSCI Emerging | EA Series vs. FlexShares Morningstar Emerging | EA Series vs. First Trust Emerging |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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