Correlation Between Vy Goldman and State Street
Can any of the company-specific risk be diversified away by investing in both Vy Goldman and State Street 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 Vy Goldman and State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Goldman Sachs and State Street Global, you can compare the effects of market volatilities on Vy Goldman and State Street 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 Vy Goldman with a short position of State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Goldman and State Street.
Diversification Opportunities for Vy Goldman and State Street
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VGSBX and State is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vy Goldman Sachs and State Street Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Global and Vy Goldman 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 Vy Goldman Sachs are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Global has no effect on the direction of Vy Goldman i.e., Vy Goldman and State Street go up and down completely randomly.
Pair Corralation between Vy Goldman and State Street
Assuming the 90 days horizon Vy Goldman is expected to generate 1.48 times less return on investment than State Street. But when comparing it to its historical volatility, Vy Goldman Sachs is 1.35 times less risky than State Street. It trades about 0.08 of its potential returns per unit of risk. State Street Global is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,256 in State Street Global on September 4, 2024 and sell it today you would earn a total of 1,658 from holding State Street Global or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Vy Goldman Sachs vs. State Street Global
Performance |
| Timeline |
| Vy Goldman Sachs |
| State Street Global |
Vy Goldman and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Goldman and State Street
The main advantage of trading using opposite Vy Goldman and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Goldman position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Bond Index | Vy Goldman vs. Voya Limited Maturity | Vy Goldman vs. Voya Limited Maturity |
| State Street vs. Western Assets Emerging | State Street vs. Oklahoma College Savings | State Street vs. Fundvantage Trust | State Street vs. The Hartford Emerging |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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