Correlation Between Goldman Sachs and AMERICAN
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By analyzing existing cross correlation between Goldman Sachs Group and AMERICAN HONDA FINANCE, you can compare the effects of market volatilities on Goldman Sachs and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and AMERICAN.
Diversification Opportunities for Goldman Sachs and AMERICAN
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and AMERICAN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and AMERICAN HONDA FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN HONDA FINANCE 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN HONDA FINANCE has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and AMERICAN go up and down completely randomly.
Pair Corralation between Goldman Sachs and AMERICAN
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 8.59 times more return on investment than AMERICAN. However, Goldman Sachs is 8.59 times more volatile than AMERICAN HONDA FINANCE. It trades about 0.26 of its potential returns per unit of risk. AMERICAN HONDA FINANCE is currently generating about -0.19 per unit of risk. If you would invest 51,779 in Goldman Sachs Group on September 1, 2024 and sell it today you would earn a total of 9,078 from holding Goldman Sachs Group or generate 17.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Goldman Sachs Group vs. AMERICAN HONDA FINANCE
Performance |
| Timeline |
| Goldman Sachs Group |
| AMERICAN HONDA FINANCE |
Goldman Sachs and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and AMERICAN
The main advantage of trading using opposite Goldman Sachs and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. Netflix | AMERICAN vs. Empire State Realty |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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