Correlation Between Saat Moderate and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Goldman Sachs Real, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Goldman Sachs.
Diversification Opportunities for Saat Moderate and Goldman Sachs
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saat and Goldman is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Goldman Sachs Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Real and Saat Moderate 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 Saat Moderate Strategy 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 Real has no effect on the direction of Saat Moderate i.e., Saat Moderate and Goldman Sachs go up and down completely randomly.
Pair Corralation between Saat Moderate and Goldman Sachs
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.2 times more return on investment than Goldman Sachs. However, Saat Moderate Strategy is 4.97 times less risky than Goldman Sachs. It trades about 0.34 of its potential returns per unit of risk. Goldman Sachs Real is currently generating about -0.01 per unit of risk. If you would invest 1,175 in Saat Moderate Strategy on September 15, 2024 and sell it today you would earn a total of 13.00 from holding Saat Moderate Strategy or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Goldman Sachs Real
Performance |
| Timeline |
| Saat Moderate Strategy |
| Goldman Sachs Real |
Saat Moderate and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Goldman Sachs
The main advantage of trading using opposite Saat Moderate and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. Simt Multi Asset Accumulation | Saat Moderate vs. Saat Market Growth | Saat Moderate vs. Simt Real Return | Saat Moderate vs. Simt Small Cap |
| Goldman Sachs vs. Saat Moderate Strategy | Goldman Sachs vs. Qs Moderate Growth | Goldman Sachs vs. Calvert Moderate Allocation | Goldman Sachs vs. Sa Worldwide Moderate |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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