Correlation Between Icon Financial and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Icon Financial 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 Icon Financial and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Financial Fund and Goldman Sachs Trust, you can compare the effects of market volatilities on Icon Financial 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 Icon Financial with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Financial and Goldman Sachs.
Diversification Opportunities for Icon Financial and Goldman Sachs
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Icon and Goldman is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Goldman Sachs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Trust and Icon Financial 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 Icon Financial Fund 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 Trust has no effect on the direction of Icon Financial i.e., Icon Financial and Goldman Sachs go up and down completely randomly.
Pair Corralation between Icon Financial and Goldman Sachs
Assuming the 90 days horizon Icon Financial is expected to generate 1.45 times less return on investment than Goldman Sachs. In addition to that, Icon Financial is 6.71 times more volatile than Goldman Sachs Trust. It trades about 0.01 of its total potential returns per unit of risk. Goldman Sachs Trust is currently generating about 0.08 per unit of volatility. If you would invest 96.00 in Goldman Sachs Trust on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Goldman Sachs Trust or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.18% |
| Values | Daily Returns |
Icon Financial Fund vs. Goldman Sachs Trust
Performance |
| Timeline |
| Icon Financial |
| Goldman Sachs Trust |
Icon Financial and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Financial and Goldman Sachs
The main advantage of trading using opposite Icon Financial and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Financial 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.| Icon Financial vs. Nuveen Minnesota Municipal | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Blrc Sgy Mnp | Icon Financial vs. T Rowe Price |
| Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard 500 Index | Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard Total Stock |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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