Correlation Between Aig Government and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Aig Government 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 Aig Government and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Goldman Sachs High, you can compare the effects of market volatilities on Aig Government 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 Aig Government with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Goldman Sachs.
Diversification Opportunities for Aig Government and Goldman Sachs
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aig and Goldman is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money 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 Aig Government 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 Aig Government Money 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 Aig Government i.e., Aig Government and Goldman Sachs go up and down completely randomly.
Pair Corralation between Aig Government and Goldman Sachs
Assuming the 90 days horizon Aig Government Money is expected to generate 7.44 times more return on investment than Goldman Sachs. However, Aig Government is 7.44 times more volatile than Goldman Sachs High. It trades about 0.19 of its potential returns per unit of risk. Goldman Sachs High is currently generating about 0.32 per unit of risk. If you would invest 1,004 in Aig Government Money on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Aig Government Money or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Goldman Sachs High
Performance |
| Timeline |
| Aig Government Money |
| Goldman Sachs High |
Aig Government and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Goldman Sachs
The main advantage of trading using opposite Aig Government and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government 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.| Aig Government vs. Artisan Thematic Fund | Aig Government vs. Growth Opportunities Fund | Aig Government vs. Volumetric Fund Volumetric | Aig Government vs. Small Cap Stock |
| Goldman Sachs vs. Gold And Precious | Goldman Sachs vs. Franklin Gold Precious | Goldman Sachs vs. International Investors Gold | 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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