Correlation Between Xtrackers USD and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Xtrackers USD 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 Xtrackers USD and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers USD High and Goldman Sachs ActiveBeta, you can compare the effects of market volatilities on Xtrackers USD 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 Xtrackers USD with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers USD and Goldman Sachs.
Diversification Opportunities for Xtrackers USD and Goldman Sachs
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and Goldman is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers USD High and Goldman Sachs ActiveBeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ActiveBeta and Xtrackers USD 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 Xtrackers USD High 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 ActiveBeta has no effect on the direction of Xtrackers USD i.e., Xtrackers USD and Goldman Sachs go up and down completely randomly.
Pair Corralation between Xtrackers USD and Goldman Sachs
Given the investment horizon of 90 days Xtrackers USD High is expected to generate 0.31 times more return on investment than Goldman Sachs. However, Xtrackers USD High is 3.2 times less risky than Goldman Sachs. It trades about 0.2 of its potential returns per unit of risk. Goldman Sachs ActiveBeta is currently generating about -0.09 per unit of risk. If you would invest 3,632 in Xtrackers USD High on August 30, 2024 and sell it today you would earn a total of 37.00 from holding Xtrackers USD High or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers USD High vs. Goldman Sachs ActiveBeta
Performance |
| Timeline |
| Xtrackers USD High |
| Goldman Sachs ActiveBeta |
Xtrackers USD and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers USD and Goldman Sachs
The main advantage of trading using opposite Xtrackers USD and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers USD 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.| Xtrackers USD vs. SPDR Bloomberg Emerging | Xtrackers USD vs. iShares Broad USD | Xtrackers USD vs. SPDR Barclays Intermediate | Xtrackers USD vs. Schwab Intermediate Term Treasury |
| Goldman Sachs vs. ABIVAX Socit Anonyme | Goldman Sachs vs. HUMANA INC | Goldman Sachs vs. SCOR PK | Goldman Sachs vs. Aquagold International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |