Correlation Between Voya Real and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Voya Real 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 Voya Real and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Real Estate and Goldman Sachs Clean, you can compare the effects of market volatilities on Voya Real 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 Voya Real with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Real and Goldman Sachs.
Diversification Opportunities for Voya Real and Goldman Sachs
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Goldman is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Voya Real Estate and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean and Voya Real 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 Voya Real Estate 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 Clean has no effect on the direction of Voya Real i.e., Voya Real and Goldman Sachs go up and down completely randomly.
Pair Corralation between Voya Real and Goldman Sachs
Assuming the 90 days horizon Voya Real Estate is expected to generate 0.96 times more return on investment than Goldman Sachs. However, Voya Real Estate is 1.04 times less risky than Goldman Sachs. It trades about 0.04 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.04 per unit of risk. If you would invest 914.00 in Voya Real Estate on September 12, 2024 and sell it today you would earn a total of 180.00 from holding Voya Real Estate or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Real Estate vs. Goldman Sachs Clean
Performance |
| Timeline |
| Voya Real Estate |
| Goldman Sachs Clean |
Voya Real and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Real and Goldman Sachs
The main advantage of trading using opposite Voya Real and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Real 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.| Voya Real vs. Health Biotchnology Portfolio | Voya Real vs. Hartford Healthcare Hls | Voya Real vs. Delaware Healthcare Fund | Voya Real vs. Baron Health Care |
| Goldman Sachs vs. Leggmason Partners Institutional | Goldman Sachs vs. Falcon Focus Scv | Goldman Sachs vs. Abr 7525 Volatility | Goldman Sachs vs. Scharf Global Opportunity |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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