Correlation Between Goldman Sachs and Ab Sustainable
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ab Sustainable 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 Ab Sustainable 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 Ab Sustainable Thematic, you can compare the effects of market volatilities on Goldman Sachs and Ab Sustainable 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 Ab Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ab Sustainable.
Diversification Opportunities for Goldman Sachs and Ab Sustainable
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and SUTAX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Technology and Ab Sustainable Thematic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Sustainable Thematic 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 Ab Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Sustainable Thematic has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ab Sustainable go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ab Sustainable
Assuming the 90 days horizon Goldman Sachs Technology is expected to generate 1.34 times more return on investment than Ab Sustainable. However, Goldman Sachs is 1.34 times more volatile than Ab Sustainable Thematic. It trades about 0.15 of its potential returns per unit of risk. Ab Sustainable Thematic is currently generating about 0.19 per unit of risk. If you would invest 3,590 in Goldman Sachs Technology on June 1, 2025 and sell it today you would earn a total of 321.00 from holding Goldman Sachs Technology or generate 8.94% 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 Technology vs. Ab Sustainable Thematic
Performance |
| Timeline |
| Goldman Sachs Technology |
| Ab Sustainable Thematic |
Goldman Sachs and Ab Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ab Sustainable
The main advantage of trading using opposite Goldman Sachs and Ab Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ab Sustainable 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 Ab Sustainable will offset losses from the drop in Ab Sustainable's long position.| Goldman Sachs vs. City National Rochdale | Goldman Sachs vs. Gmo High Yield | Goldman Sachs vs. Six Circles Credit | Goldman Sachs vs. Pioneer High Yield |
| Ab Sustainable vs. Six Circles Credit | Ab Sustainable vs. City National Rochdale | Ab Sustainable vs. Pioneer High Yield | Ab Sustainable vs. Prudential High Yield |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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