Correlation Between Lyxor UCITS and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Lyxor UCITS 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 Lyxor UCITS and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor UCITS iBoxx and Goldman Sachs Global, you can compare the effects of market volatilities on Lyxor UCITS 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 Lyxor UCITS with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and Goldman Sachs.
Diversification Opportunities for Lyxor UCITS and Goldman Sachs
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyxor and Goldman is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS iBoxx and Goldman Sachs Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Global and Lyxor UCITS 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 Lyxor UCITS iBoxx 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 Global has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and Goldman Sachs go up and down completely randomly.
Pair Corralation between Lyxor UCITS and Goldman Sachs
Assuming the 90 days trading horizon Lyxor UCITS iBoxx is expected to under-perform the Goldman Sachs. In addition to that, Lyxor UCITS is 1.3 times more volatile than Goldman Sachs Global. It trades about -0.11 of its total potential returns per unit of risk. Goldman Sachs Global is currently generating about 0.16 per unit of volatility. If you would invest 4,359 in Goldman Sachs Global on November 28, 2024 and sell it today you would earn a total of 42.00 from holding Goldman Sachs Global or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lyxor UCITS iBoxx vs. Goldman Sachs Global
Performance |
| Timeline |
| Lyxor UCITS iBoxx |
| Goldman Sachs Global |
Lyxor UCITS and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and Goldman Sachs
The main advantage of trading using opposite Lyxor UCITS and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS 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.| Lyxor UCITS vs. Lyxor Smart Overnight | Lyxor UCITS vs. Lyxor UCITS EuroMTS | Lyxor UCITS vs. Lyxor Core UK | Lyxor UCITS vs. Lyxor Core Global |
| Goldman Sachs vs. Leverage Shares 3x | Goldman Sachs vs. WisdomTree Natural Gas | Goldman Sachs vs. Leverage Shares 3x | Goldman Sachs vs. Leverage Shares 3x |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |