Correlation Between The Hartford and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both The Hartford and Goldman Sachs 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 The Hartford and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Global and Goldman Sachs Clean, you can compare the effects of market volatilities on The Hartford and Goldman Sachs 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 The Hartford with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Goldman Sachs.
Diversification Opportunities for The Hartford and Goldman Sachs
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THE and Goldman is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Global and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean and The Hartford 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 The Hartford Global are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Clean has no effect on the direction of The Hartford i.e., The Hartford and Goldman Sachs go up and down completely randomly.
Pair Corralation between The Hartford and Goldman Sachs
Assuming the 90 days horizon The Hartford Global is expected to generate 0.33 times more return on investment than Goldman Sachs. However, The Hartford Global is 3.07 times less risky than Goldman Sachs. It trades about -0.16 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.21 per unit of risk. If you would invest 901.00 in The Hartford Global on August 29, 2024 and sell it today you would lose (16.00) from holding The Hartford Global or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Global vs. Goldman Sachs Clean
Performance |
| Timeline |
| Hartford Global |
| Goldman Sachs Clean |
The Hartford and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Goldman Sachs
The main advantage of trading using opposite The Hartford and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth | The Hartford vs. The Hartford Growth |
| Goldman Sachs vs. Dreyfusstandish Global Fixed | Goldman Sachs vs. The Hartford Global | Goldman Sachs vs. Rbb Fund Trust | Goldman Sachs vs. Morgan Stanley Global |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |