Correlation Between Voya Global and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Voya Global 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 Voya Global and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Advantage and Goldman Sachs ETF, you can compare the effects of market volatilities on Voya Global 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 Voya Global with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Goldman Sachs.
Diversification Opportunities for Voya Global and Goldman Sachs
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voya and Goldman is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Advantage and Goldman Sachs ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ETF and Voya Global 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 Voya Global Advantage 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 ETF has no effect on the direction of Voya Global i.e., Voya Global and Goldman Sachs go up and down completely randomly.
Pair Corralation between Voya Global and Goldman Sachs
Considering the 90-day investment horizon Voya Global Advantage is expected to generate 0.71 times more return on investment than Goldman Sachs. However, Voya Global Advantage is 1.4 times less risky than Goldman Sachs. It trades about 0.37 of its potential returns per unit of risk. Goldman Sachs ETF is currently generating about -0.01 per unit of risk. If you would invest 930.00 in Voya Global Advantage on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Voya Global Advantage or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya Global Advantage vs. Goldman Sachs ETF
Performance |
| Timeline |
| Voya Global Advantage |
| Goldman Sachs ETF |
Voya Global and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Goldman Sachs
The main advantage of trading using opposite Voya Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global 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.| Voya Global vs. Western Asset High | Voya Global vs. Western Asset Global | Voya Global vs. Western Asset High | Voya Global vs. Voya Global Equity |
| Goldman Sachs vs. iShares ESG Aggregate | Goldman Sachs vs. SPDR MSCI Emerging | Goldman Sachs vs. Aquagold International | Goldman Sachs vs. Thrivent High Yield |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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