Correlation Between Goldman Sachs and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ambrus Core 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 Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Strategic and Ambrus Core Bond, you can compare the effects of market volatilities on Goldman Sachs and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ambrus Core.
Diversification Opportunities for Goldman Sachs and Ambrus Core
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Ambrus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Strategic and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Strategic are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ambrus Core go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ambrus Core
Assuming the 90 days horizon Goldman Sachs Strategic is expected to generate 0.92 times more return on investment than Ambrus Core. However, Goldman Sachs Strategic is 1.09 times less risky than Ambrus Core. It trades about 0.33 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.14 per unit of risk. If you would invest 932.00 in Goldman Sachs Strategic on October 23, 2024 and sell it today you would earn a total of 10.00 from holding Goldman Sachs Strategic or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Strategic vs. Ambrus Core Bond
Performance |
| Timeline |
| Goldman Sachs Strategic |
| Ambrus Core Bond |
Goldman Sachs and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ambrus Core
The main advantage of trading using opposite Goldman Sachs and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Goldman Sachs vs. Sp Smallcap 600 | Goldman Sachs vs. Tax Managed Mid Small | Goldman Sachs vs. Lebenthal Lisanti Small | Goldman Sachs vs. Hunter Small Cap |
| Ambrus Core vs. Morningstar Defensive Bond | Ambrus Core vs. Western Asset Municipal | Ambrus Core vs. Intermediate Term Bond Fund | Ambrus Core vs. Multisector Bond Sma |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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