Correlation Between Goldman Sachs and The Hartford
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Inflation and The Hartford Inflation, you can compare the effects of market volatilities on Goldman Sachs and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and The Hartford.
Diversification Opportunities for Goldman Sachs and The Hartford
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and The is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Inflation and The Hartford Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Inflation 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 Inflation are associated (or correlated) with The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Inflation has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and The Hartford go up and down completely randomly.
Pair Corralation between Goldman Sachs and The Hartford
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.09 times less return on investment than The Hartford. In addition to that, Goldman Sachs is 1.16 times more volatile than The Hartford Inflation. It trades about 0.07 of its total potential returns per unit of risk. The Hartford Inflation is currently generating about 0.09 per unit of volatility. If you would invest 937.00 in The Hartford Inflation on September 1, 2024 and sell it today you would earn a total of 63.00 from holding The Hartford Inflation or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Goldman Sachs Inflation vs. The Hartford Inflation
Performance |
| Timeline |
| Goldman Sachs Inflation |
| The Hartford Inflation |
Goldman Sachs and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and The Hartford
The main advantage of trading using opposite Goldman Sachs and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Goldman Sachs vs. Commonwealth Global Fund | Goldman Sachs vs. Vanguard Small Cap Growth | Goldman Sachs vs. Eic Value Fund | Goldman Sachs vs. Growth Opportunities Fund |
| The Hartford vs. Hartford Growth Opportunities | The Hartford vs. The Hartford Growth | The Hartford vs. Hartford Global Impact | The Hartford vs. Hartford Global Impact |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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