Correlation Between Goldman Sachs and Global X
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs ActiveBeta and Global X Lithium, you can compare the effects of market volatilities on Goldman Sachs and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Global X.
Diversification Opportunities for Goldman Sachs and Global X
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Global is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs ActiveBeta and Global X Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Lithium 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 ActiveBeta are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Lithium has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Global X go up and down completely randomly.
Pair Corralation between Goldman Sachs and Global X
Considering the 90-day investment horizon Goldman Sachs is expected to generate 5.15 times less return on investment than Global X. But when comparing it to its historical volatility, Goldman Sachs ActiveBeta is 2.42 times less risky than Global X. It trades about 0.09 of its potential returns per unit of risk. Global X Lithium is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,001 in Global X Lithium on September 12, 2025 and sell it today you would earn a total of 1,421 from holding Global X Lithium or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs ActiveBeta vs. Global X Lithium
Performance |
| Timeline |
| Goldman Sachs ActiveBeta |
| Global X Lithium |
Goldman Sachs and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Global X
The main advantage of trading using opposite Goldman Sachs and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Goldman Sachs vs. Goldman Sachs MarketBeta | Goldman Sachs vs. Hartford Multifactor Developed | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. IQ 50 Percent |
| Global X vs. Goldman Sachs ActiveBeta | Global X vs. Global X Cybersecurity | Global X vs. Schwab International Dividend | Global X vs. Goldman Sachs MarketBeta |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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