Correlation Between Goldman Sachs and Aqr Diversified
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Aqr Diversified 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 Aqr Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Real and Aqr Diversified Arbitrage, you can compare the effects of market volatilities on Goldman Sachs and Aqr Diversified 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 Aqr Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Aqr Diversified.
Diversification Opportunities for Goldman Sachs and Aqr Diversified
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Aqr is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Real and Aqr Diversified Arbitrage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Diversified Arbitrage 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 Real are associated (or correlated) with Aqr Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Diversified Arbitrage has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Aqr Diversified go up and down completely randomly.
Pair Corralation between Goldman Sachs and Aqr Diversified
Assuming the 90 days horizon Goldman Sachs Real is expected to under-perform the Aqr Diversified. In addition to that, Goldman Sachs is 2.27 times more volatile than Aqr Diversified Arbitrage. It trades about -0.02 of its total potential returns per unit of risk. Aqr Diversified Arbitrage is currently generating about 0.23 per unit of volatility. If you would invest 1,211 in Aqr Diversified Arbitrage on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Aqr Diversified Arbitrage or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Goldman Sachs Real vs. Aqr Diversified Arbitrage
Performance |
| Timeline |
| Goldman Sachs Real |
| Aqr Diversified Arbitrage |
Goldman Sachs and Aqr Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Aqr Diversified
The main advantage of trading using opposite Goldman Sachs and Aqr Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Aqr Diversified 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 Aqr Diversified will offset losses from the drop in Aqr Diversified's long position.| Goldman Sachs vs. Red Oak Technology | Goldman Sachs vs. Icon Information Technology | Goldman Sachs vs. Fidelity Advisor Technology | Goldman Sachs vs. Specialized Technology Fund |
| Aqr Diversified vs. Fxybjx | Aqr Diversified vs. Fuhkbx | Aqr Diversified vs. Arrow Managed Futures | Aqr Diversified vs. Rational Dividend Capture |
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.
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