Correlation Between Voya Solution and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Voya Solution 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 Solution 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 Solution Balanced and Goldman Sachs Real, you can compare the effects of market volatilities on Voya Solution 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 Solution with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Goldman Sachs.
Diversification Opportunities for Voya Solution and Goldman Sachs
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Goldman is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Balanced and Goldman Sachs Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Real and Voya Solution 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 Solution Balanced 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 Real has no effect on the direction of Voya Solution i.e., Voya Solution and Goldman Sachs go up and down completely randomly.
Pair Corralation between Voya Solution and Goldman Sachs
Assuming the 90 days horizon Voya Solution Balanced is expected to generate 0.43 times more return on investment than Goldman Sachs. However, Voya Solution Balanced is 2.31 times less risky than Goldman Sachs. It trades about 0.12 of its potential returns per unit of risk. Goldman Sachs Real is currently generating about 0.03 per unit of risk. If you would invest 938.00 in Voya Solution Balanced on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Voya Solution Balanced or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Solution Balanced vs. Goldman Sachs Real
Performance |
| Timeline |
| Voya Solution Balanced |
| Goldman Sachs Real |
Voya Solution and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Goldman Sachs
The main advantage of trading using opposite Voya Solution and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution 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 Solution vs. Goldman Sachs Real | Voya Solution vs. Short Real Estate | Voya Solution vs. Fidelity Real Estate | Voya Solution vs. Columbia Real Estate |
| Goldman Sachs vs. Virtus Multi Sector Short | Goldman Sachs vs. Prudential Short Duration | Goldman Sachs vs. Boston Partners Longshort | Goldman Sachs vs. Siit Ultra Short |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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