Correlation Between Goldman Sachs and Golub Capital
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Golub Capital 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 Golub Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and Golub Capital BDC, you can compare the effects of market volatilities on Goldman Sachs and Golub Capital 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 Golub Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Golub Capital.
Diversification Opportunities for Goldman Sachs and Golub Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Golub is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Golub Capital BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golub Capital BDC 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 Group are associated (or correlated) with Golub Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golub Capital BDC has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Golub Capital go up and down completely randomly.
Pair Corralation between Goldman Sachs and Golub Capital
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 1.63 times more return on investment than Golub Capital. However, Goldman Sachs is 1.63 times more volatile than Golub Capital BDC. It trades about 0.08 of its potential returns per unit of risk. Golub Capital BDC is currently generating about 0.08 per unit of risk. If you would invest 34,514 in Goldman Sachs Group on August 27, 2024 and sell it today you would earn a total of 25,764 from holding Goldman Sachs Group or generate 74.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Golub Capital BDC
Performance |
| Timeline |
| Goldman Sachs Group |
| Golub Capital BDC |
Goldman Sachs and Golub Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Golub Capital
The main advantage of trading using opposite Goldman Sachs and Golub Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Golub Capital 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 Golub Capital will offset losses from the drop in Golub Capital's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Golub Capital vs. BlackRock TCP Capital | Golub Capital vs. Carlyle Secured Lending | Golub Capital vs. Triplepoint Venture Growth | Golub Capital vs. New Mountain Finance |
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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