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 Equity, 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
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambrus and Goldman is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond and Goldman Sachs Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Equity 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 Equity 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 is expected to generate 3.3 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Ambrus Core Bond is 2.78 times less risky than Goldman Sachs. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,341 in Goldman Sachs Equity on September 4, 2024 and sell it today you would earn a total of 478.00 from holding Goldman Sachs Equity or generate 35.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ambrus Core Bond vs. Goldman Sachs Equity
Performance |
| Timeline |
| Ambrus Core Bond |
| Goldman Sachs Equity |
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. Ambrus Tax Conscious | Ambrus Core vs. Ambrus Tax Conscious | Ambrus Core vs. The Hartford Dividend | Ambrus Core vs. Acclivity Small Cap |
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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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