Correlation Between Goldman Sachs and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Horizon Active 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 Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Technology and Horizon Active Risk, you can compare the effects of market volatilities on Goldman Sachs and Horizon Active 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 Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Horizon Active.
Diversification Opportunities for Goldman Sachs and Horizon Active
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Horizon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Horizon Active Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Risk 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 Technology are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Risk has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Horizon Active go up and down completely randomly.
Pair Corralation between Goldman Sachs and Horizon Active
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.38 times less return on investment than Horizon Active. In addition to that, Goldman Sachs is 1.52 times more volatile than Horizon Active Risk. It trades about 0.07 of its total potential returns per unit of risk. Horizon Active Risk is currently generating about 0.14 per unit of volatility. If you would invest 2,515 in Horizon Active Risk on May 28, 2025 and sell it today you would earn a total of 91.00 from holding Horizon Active Risk or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Goldman Sachs Technology vs. Horizon Active Risk
Performance |
| Timeline |
| Goldman Sachs Technology |
| Horizon Active Risk |
Goldman Sachs and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Horizon Active
The main advantage of trading using opposite Goldman Sachs and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Goldman Sachs vs. Touchstone Small Cap | Goldman Sachs vs. Western Asset Diversified | Goldman Sachs vs. Transamerica International Small | Goldman Sachs vs. Mutual Of America |
| Horizon Active vs. Science Technology Fund | Horizon Active vs. Invesco Technology Fund | Horizon Active vs. Goldman Sachs Technology | Horizon Active vs. Fidelity Advisor Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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