Correlation Between Goldman Sachs and Silvercrest Asset
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Silvercrest Asset 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 Silvercrest Asset 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 Silvercrest Asset Management, you can compare the effects of market volatilities on Goldman Sachs and Silvercrest Asset 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 Silvercrest Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Silvercrest Asset.
Diversification Opportunities for Goldman Sachs and Silvercrest Asset
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Silvercrest is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Silvercrest Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercrest Asset 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 Silvercrest Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercrest Asset has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Silvercrest Asset go up and down completely randomly.
Pair Corralation between Goldman Sachs and Silvercrest Asset
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 1.0 times more return on investment than Silvercrest Asset. However, Goldman Sachs Group is 1.0 times less risky than Silvercrest Asset. It trades about 0.35 of its potential returns per unit of risk. Silvercrest Asset Management is currently generating about 0.04 per unit of risk. If you would invest 55,399 in Goldman Sachs Group on October 20, 2024 and sell it today you would earn a total of 7,195 from holding Goldman Sachs Group or generate 12.99% 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. Silvercrest Asset Management
Performance |
| Timeline |
| Goldman Sachs Group |
| Silvercrest Asset |
Goldman Sachs and Silvercrest Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Silvercrest Asset
The main advantage of trading using opposite Goldman Sachs and Silvercrest Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Silvercrest Asset 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 Silvercrest Asset will offset losses from the drop in Silvercrest Asset's long position.| Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup | Goldman Sachs vs. American Express |
| Silvercrest Asset vs. DWS Municipal Income | Silvercrest Asset vs. Blackrock Muni Intermediate | Silvercrest Asset vs. Blackrock Muniyield | Silvercrest Asset vs. MFS Investment Grade |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |