Correlation Between Goldman Sachs and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Commodities Strategy 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 Commodities Strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Mid and Commodities Strategy Fund, you can compare the effects of market volatilities on Goldman Sachs and Commodities Strategy 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 Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Commodities Strategy.
Diversification Opportunities for Goldman Sachs and Commodities Strategy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goldman and Commodities is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Mid and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy 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 Mid are associated (or correlated) with Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Commodities Strategy go up and down completely randomly.
Pair Corralation between Goldman Sachs and Commodities Strategy
Assuming the 90 days horizon Goldman Sachs Mid is expected to generate 0.97 times more return on investment than Commodities Strategy. However, Goldman Sachs Mid is 1.03 times less risky than Commodities Strategy. It trades about 0.27 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.07 per unit of risk. If you would invest 3,784 in Goldman Sachs Mid on August 29, 2024 and sell it today you would earn a total of 214.00 from holding Goldman Sachs Mid or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Goldman Sachs Mid vs. Commodities Strategy Fund
Performance |
| Timeline |
| Goldman Sachs Mid |
| Commodities Strategy |
Goldman Sachs and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Commodities Strategy
The main advantage of trading using opposite Goldman Sachs and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy's long position.| Goldman Sachs vs. Commodities Strategy Fund | Goldman Sachs vs. Legg Mason Partners | Goldman Sachs vs. Transamerica Emerging Markets | Goldman Sachs vs. Shelton Emerging Markets |
| Commodities Strategy vs. Pimco Moditiesplus Strategy | Commodities Strategy vs. HUMANA INC | Commodities Strategy vs. Aquagold International | Commodities Strategy vs. Barloworld Ltd ADR |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |