Correlation Between Goldman Sachs and Structured Products
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Structured Products 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 Goldman Sachs and Structured Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Capital and Structured Products Corp, you can compare the effects of market volatilities on Goldman Sachs and Structured Products 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 Goldman Sachs with a short position of Structured Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Structured Products.
Diversification Opportunities for Goldman Sachs and Structured Products
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goldman and Structured is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Capital and Structured Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structured Products Corp and Goldman Sachs 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 Goldman Sachs Capital are associated (or correlated) with Structured Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structured Products Corp has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Structured Products go up and down completely randomly.
Pair Corralation between Goldman Sachs and Structured Products
Considering the 90-day investment horizon Goldman Sachs Capital is expected to generate 2.37 times more return on investment than Structured Products. However, Goldman Sachs is 2.37 times more volatile than Structured Products Corp. It trades about 0.02 of its potential returns per unit of risk. Structured Products Corp is currently generating about 0.04 per unit of risk. If you would invest 2,569 in Goldman Sachs Capital on December 10, 2024 and sell it today you would earn a total of 76.00 from holding Goldman Sachs Capital or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.37% |
| Values | Daily Returns |
Goldman Sachs Capital vs. Structured Products Corp
Performance |
| Timeline |
| Goldman Sachs Capital |
| Structured Products Corp |
Goldman Sachs and Structured Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Structured Products
The main advantage of trading using opposite Goldman Sachs and Structured Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Structured Products 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 Structured Products will offset losses from the drop in Structured Products' long position.| Goldman Sachs vs. Albertsons Companies | ||
| Goldman Sachs vs. Smithfield Foods, Common | ||
| Goldman Sachs vs. Lifeway Foods | ||
| Goldman Sachs vs. Portillos |
| Structured Products vs. Credit Enhanced Corts | ||
| Structured Products vs. Strats Trust Cellular | ||
| Structured Products vs. Goldman Sachs Capital | ||
| Structured Products vs. STRATS SM Trust |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |