Correlation Between Goldman Sachs and Icon Bond
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Icon Bond 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 Goldman Sachs and Icon Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Tactical and Icon Bond Fund, you can compare the effects of market volatilities on Goldman Sachs and Icon Bond 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 Goldman Sachs with a short position of Icon Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Icon Bond.
Diversification Opportunities for Goldman Sachs and Icon Bond
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldman and ICON is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Tactical and Icon Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Bond Fund and Goldman Sachs 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 Goldman Sachs Tactical are associated (or correlated) with Icon Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Bond Fund has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Icon Bond go up and down completely randomly.
Pair Corralation between Goldman Sachs and Icon Bond
Assuming the 90 days horizon Goldman Sachs Tactical is expected to under-perform the Icon Bond. But the mutual fund apears to be less risky and, when comparing its historical volatility, Goldman Sachs Tactical is 1.05 times less risky than Icon Bond. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Icon Bond Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Icon Bond Fund on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Icon Bond Fund or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Goldman Sachs Tactical vs. Icon Bond Fund
Performance |
| Timeline |
| Goldman Sachs Tactical |
| Icon Bond Fund |
Goldman Sachs and Icon Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Icon Bond
The main advantage of trading using opposite Goldman Sachs and Icon Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Icon Bond 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 Icon Bond will offset losses from the drop in Icon Bond's long position.| Goldman Sachs vs. Icon Bond Fund | Goldman Sachs vs. Touchstone Premium Yield | Goldman Sachs vs. Vanguard High Yield Tax Exempt | Goldman Sachs vs. Ab Global Bond |
| Icon Bond vs. Pimco Income Fund | Icon Bond vs. HUMANA INC | Icon Bond vs. Aquagold International | Icon Bond vs. Barloworld Ltd ADR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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