Correlation Between Goldman Sachs and Voya Target
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Voya Target 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 Voya Target 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 Voya Target Retirement, you can compare the effects of market volatilities on Goldman Sachs and Voya Target 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 Voya Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Voya Target.
Diversification Opportunities for Goldman Sachs and Voya Target
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Voya is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Strategic and Voya Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target Retirement 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 Voya Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target Retirement has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Voya Target go up and down completely randomly.
Pair Corralation between Goldman Sachs and Voya Target
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.47 times less return on investment than Voya Target. But when comparing it to its historical volatility, Goldman Sachs Strategic is 4.45 times less risky than Voya Target. It trades about 0.5 of its potential returns per unit of risk. Voya Target Retirement is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,496 in Voya Target Retirement on November 8, 2024 and sell it today you would earn a total of 37.00 from holding Voya Target Retirement or generate 2.47% 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. Voya Target Retirement
Performance |
| Timeline |
| Goldman Sachs Strategic |
| Voya Target Retirement |
Goldman Sachs and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Voya Target
The main advantage of trading using opposite Goldman Sachs and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Voya Target 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 Voya Target will offset losses from the drop in Voya Target's long position.| Goldman Sachs vs. Ab Global Bond | Goldman Sachs vs. Ms Global Fixed | Goldman Sachs vs. Qs Global Equity | Goldman Sachs vs. Gmo Global Equity |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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