Correlation Between Cohen Steers and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Cohen Steers and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Intl and Goldman Sachs Technology, you can compare the effects of market volatilities on Cohen Steers 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 Cohen Steers with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Goldman Sachs.
Diversification Opportunities for Cohen Steers and Goldman Sachs
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cohen and Goldman is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Intl and Goldman Sachs Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Technology and Cohen Steers 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 Cohen Steers Intl 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 Technology has no effect on the direction of Cohen Steers i.e., Cohen Steers and Goldman Sachs go up and down completely randomly.
Pair Corralation between Cohen Steers and Goldman Sachs
Assuming the 90 days horizon Cohen Steers Intl is expected to under-perform the Goldman Sachs. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen Steers Intl is 1.26 times less risky than Goldman Sachs. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Goldman Sachs Technology is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,328 in Goldman Sachs Technology on September 1, 2024 and sell it today you would earn a total of 223.00 from holding Goldman Sachs Technology or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cohen Steers Intl vs. Goldman Sachs Technology
Performance |
| Timeline |
| Cohen Steers Intl |
| Goldman Sachs Technology |
Cohen Steers and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Goldman Sachs
The main advantage of trading using opposite Cohen Steers and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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.| Cohen Steers vs. Biotechnology Ultrasector Profund | Cohen Steers vs. Goldman Sachs Technology | Cohen Steers vs. Goldman Sachs Technology | Cohen Steers vs. Fidelity Advisor Technology |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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