Correlation Between Leggmason Partners and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners 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 Leggmason Partners and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Goldman Sachs Mid, you can compare the effects of market volatilities on Leggmason Partners 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 Leggmason Partners with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Goldman Sachs.
Diversification Opportunities for Leggmason Partners and Goldman Sachs
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leggmason and Goldman is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Goldman Sachs Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Mid and Leggmason Partners 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 Leggmason Partners Institutional 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 Mid has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Goldman Sachs go up and down completely randomly.
Pair Corralation between Leggmason Partners and Goldman Sachs
If you would invest 3,774 in Goldman Sachs Mid on August 28, 2024 and sell it today you would earn a total of 215.00 from holding Goldman Sachs Mid or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Goldman Sachs Mid
Performance |
| Timeline |
| Leggmason Partners |
| Goldman Sachs Mid |
Leggmason Partners and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Goldman Sachs
The main advantage of trading using opposite Leggmason Partners and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners 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.| Leggmason Partners vs. Goldman Sachs Mlp | Leggmason Partners vs. Europac Gold Fund | Leggmason Partners vs. Fidelity Advisor Gold | Leggmason Partners vs. Oppenheimer Gold Special |
| Goldman Sachs vs. Aam Select Income | Goldman Sachs vs. Rbc Microcap Value | Goldman Sachs vs. Fa 529 Aggressive | Goldman Sachs vs. Leggmason Partners Institutional |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |