Correlation Between Angel Oak and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Goldman Sachs Financial, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Goldman Sachs.
Diversification Opportunities for Angel Oak and Goldman Sachs
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Goldman is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Goldman Sachs Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Financial and Angel Oak 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 Angel Oak Financial 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 Financial has no effect on the direction of Angel Oak i.e., Angel Oak and Goldman Sachs go up and down completely randomly.
Pair Corralation between Angel Oak and Goldman Sachs
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Goldman Sachs. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 115.2 times less risky than Goldman Sachs. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Goldman Sachs Financial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Goldman Sachs Financial on August 27, 2024 and sell it today you would lose (270.00) from holding Goldman Sachs Financial or give up 72.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Angel Oak Financial vs. Goldman Sachs Financial
Performance |
| Timeline |
| Angel Oak Financial |
| Goldman Sachs Financial |
Angel Oak and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Goldman Sachs
The main advantage of trading using opposite Angel Oak and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Commonwealth Global Fund | Angel Oak vs. Us Global Investors | Angel Oak vs. Vanguard Global Credit | Angel Oak vs. Dodge Global Stock |
| Goldman Sachs vs. Janus Global Technology | Goldman Sachs vs. Fidelity Advisor Technology | Goldman Sachs vs. Dreyfus Technology Growth | Goldman Sachs vs. Invesco Technology Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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