Correlation Between Old Westbury and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Short Term and Goldman Sachs Short, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Goldman Sachs.
Diversification Opportunities for Old Westbury and Goldman Sachs
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Old and Goldman is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short and Old Westbury 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 Old Westbury Short Term 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 Short has no effect on the direction of Old Westbury i.e., Old Westbury and Goldman Sachs go up and down completely randomly.
Pair Corralation between Old Westbury and Goldman Sachs
Assuming the 90 days horizon Old Westbury Short Term is expected to generate 0.73 times more return on investment than Goldman Sachs. However, Old Westbury Short Term is 1.37 times less risky than Goldman Sachs. It trades about 0.16 of its potential returns per unit of risk. Goldman Sachs Short is currently generating about 0.1 per unit of risk. If you would invest 971.00 in Old Westbury Short Term on October 22, 2024 and sell it today you would earn a total of 40.00 from holding Old Westbury Short Term or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 45.05% |
| Values | Daily Returns |
Old Westbury Short Term vs. Goldman Sachs Short
Performance |
| Timeline |
| Old Westbury Short |
| Goldman Sachs Short |
Old Westbury and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Goldman Sachs
The main advantage of trading using opposite Old Westbury and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Mesirow Financial Small | Old Westbury vs. Angel Oak Financial | Old Westbury vs. First Trust Specialty | Old Westbury vs. Blackstone Secured Lending |
| Goldman Sachs vs. Wealthbuilder Moderate Balanced | Goldman Sachs vs. Voya Target Retirement | Goldman Sachs vs. Lifestyle Ii Moderate | Goldman Sachs vs. Retirement Living Through |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |