Correlation Between Horizon Kinetics and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics 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 Horizon Kinetics and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics SPAC and Goldman Sachs ActiveBeta, you can compare the effects of market volatilities on Horizon Kinetics 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 Horizon Kinetics with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Goldman Sachs.
Diversification Opportunities for Horizon Kinetics and Goldman Sachs
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Horizon and Goldman is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics SPAC and Goldman Sachs ActiveBeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ActiveBeta and Horizon Kinetics 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 Horizon Kinetics SPAC 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 ActiveBeta has no effect on the direction of Horizon Kinetics i.e., Horizon Kinetics and Goldman Sachs go up and down completely randomly.
Pair Corralation between Horizon Kinetics and Goldman Sachs
Given the investment horizon of 90 days Horizon Kinetics SPAC is expected to generate 0.29 times more return on investment than Goldman Sachs. However, Horizon Kinetics SPAC is 3.46 times less risky than Goldman Sachs. It trades about -0.02 of its potential returns per unit of risk. Goldman Sachs ActiveBeta is currently generating about -0.09 per unit of risk. If you would invest 10,062 in Horizon Kinetics SPAC on September 1, 2024 and sell it today you would lose (12.00) from holding Horizon Kinetics SPAC or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Horizon Kinetics SPAC vs. Goldman Sachs ActiveBeta
Performance |
| Timeline |
| Horizon Kinetics SPAC |
| Goldman Sachs ActiveBeta |
Horizon Kinetics and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and Goldman Sachs
The main advantage of trading using opposite Horizon Kinetics and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics 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.| Horizon Kinetics vs. Fidelity MSCI Financials | Horizon Kinetics vs. Fidelity MSCI Consumer | Horizon Kinetics vs. Fidelity MSCI Consumer | Horizon Kinetics vs. Fidelity MSCI Industrials |
| Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. WisdomTree Europe Quality |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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