Correlation Between Goldman Sachs and Nationwide Fund
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Nationwide Fund 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 Goldman Sachs and Nationwide Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Flexible and Nationwide Fund Class, you can compare the effects of market volatilities on Goldman Sachs and Nationwide Fund 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 Goldman Sachs with a short position of Nationwide Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Nationwide Fund.
Diversification Opportunities for Goldman Sachs and Nationwide Fund
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Nationwide is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Flexible and Nationwide Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Fund Class and Goldman Sachs 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 Goldman Sachs Flexible are associated (or correlated) with Nationwide Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Fund Class has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Nationwide Fund go up and down completely randomly.
Pair Corralation between Goldman Sachs and Nationwide Fund
Assuming the 90 days horizon Goldman Sachs Flexible is expected to generate 1.03 times more return on investment than Nationwide Fund. However, Goldman Sachs is 1.03 times more volatile than Nationwide Fund Class. It trades about 0.18 of its potential returns per unit of risk. Nationwide Fund Class is currently generating about 0.18 per unit of risk. If you would invest 1,639 in Goldman Sachs Flexible on June 12, 2025 and sell it today you would earn a total of 115.00 from holding Goldman Sachs Flexible or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Flexible vs. Nationwide Fund Class
Performance |
| Timeline |
| Goldman Sachs Flexible |
| Nationwide Fund Class |
Goldman Sachs and Nationwide Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Nationwide Fund
The main advantage of trading using opposite Goldman Sachs and Nationwide Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Nationwide Fund 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 Nationwide Fund will offset losses from the drop in Nationwide Fund's long position.| Goldman Sachs vs. Tiaa Cref Lifecycle Retirement | Goldman Sachs vs. Multimanager Lifestyle Moderate | Goldman Sachs vs. Bmo In Retirement Fund | Goldman Sachs vs. Mfs Lifetime Retirement |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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