Correlation Between Salient International and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Salient International 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 Salient International and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salient International Real and Goldman Sachs High, you can compare the effects of market volatilities on Salient International 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 Salient International with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salient International and Goldman Sachs.
Diversification Opportunities for Salient International and Goldman Sachs
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salient and Goldman is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Salient International Real and Goldman Sachs High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs High and Salient International 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 Salient International Real 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 High has no effect on the direction of Salient International i.e., Salient International and Goldman Sachs go up and down completely randomly.
Pair Corralation between Salient International and Goldman Sachs
Assuming the 90 days horizon Salient International Real is expected to generate 5.72 times more return on investment than Goldman Sachs. However, Salient International is 5.72 times more volatile than Goldman Sachs High. It trades about 0.11 of its potential returns per unit of risk. Goldman Sachs High is currently generating about 0.14 per unit of risk. If you would invest 1,194 in Salient International Real on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Salient International Real or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Salient International Real vs. Goldman Sachs High
Performance |
| Timeline |
| Salient International |
| Goldman Sachs High |
Salient International and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salient International and Goldman Sachs
The main advantage of trading using opposite Salient International and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salient International 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.| Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Plus | Salient International vs. Salient Tactical Growth | Salient International vs. Salient Tactical Growth |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |