Correlation Between Ambrus Core and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Ambrus Core 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 Ambrus Core and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Goldman Sachs International, you can compare the effects of market volatilities on Ambrus Core 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 Ambrus Core with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Goldman Sachs.
Diversification Opportunities for Ambrus Core and Goldman Sachs
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambrus and Goldman is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Goldman Sachs International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Intern and Ambrus Core 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 Ambrus Core Bond 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 Intern has no effect on the direction of Ambrus Core i.e., Ambrus Core and Goldman Sachs go up and down completely randomly.
Pair Corralation between Ambrus Core and Goldman Sachs
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.21 times more return on investment than Goldman Sachs. However, Ambrus Core Bond is 4.81 times less risky than Goldman Sachs. It trades about 0.16 of its potential returns per unit of risk. Goldman Sachs International is currently generating about -0.03 per unit of risk. If you would invest 993.00 in Ambrus Core Bond on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Ambrus Core Bond or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Goldman Sachs International
Performance |
| Timeline |
| Ambrus Core Bond |
| Goldman Sachs Intern |
Ambrus Core and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Goldman Sachs
The main advantage of trading using opposite Ambrus Core and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core 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.| Ambrus Core vs. John Hancock Financial | Ambrus Core vs. Vanguard Financials Index | Ambrus Core vs. Transamerica Financial Life | Ambrus Core vs. Blackrock Financial Institutions |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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