Correlation Between Western Asset and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Municipal and Goldman Sachs Satellite, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Goldman Sachs.
Diversification Opportunities for Western Asset and Goldman Sachs
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Goldman is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Municipal and Goldman Sachs Satellite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Satellite and Western Asset 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 Western Asset Municipal 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 Satellite has no effect on the direction of Western Asset i.e., Western Asset and Goldman Sachs go up and down completely randomly.
Pair Corralation between Western Asset and Goldman Sachs
If you would invest 707.00 in Western Asset Municipal on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Western Asset Municipal or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Western Asset Municipal vs. Goldman Sachs Satellite
Performance |
| Timeline |
| Western Asset Municipal |
| Goldman Sachs Satellite |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Western Asset and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Goldman Sachs
The main advantage of trading using opposite Western Asset and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
| Goldman Sachs vs. Western Asset Municipal | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. Dws Government Money | Goldman Sachs vs. Doubleline Yield Opportunities |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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