Correlation Between Goldman Sachs and Alcon AG
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Alcon AG 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 Alcon AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and Alcon AG, you can compare the effects of market volatilities on Goldman Sachs and Alcon AG 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 Alcon AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Alcon AG.
Diversification Opportunities for Goldman Sachs and Alcon AG
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goldman and Alcon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Alcon AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcon AG 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 Group are associated (or correlated) with Alcon AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcon AG has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Alcon AG go up and down completely randomly.
Pair Corralation between Goldman Sachs and Alcon AG
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 1.03 times more return on investment than Alcon AG. However, Goldman Sachs is 1.03 times more volatile than Alcon AG. It trades about 0.1 of its potential returns per unit of risk. Alcon AG is currently generating about -0.05 per unit of risk. If you would invest 71,214 in Goldman Sachs Group on August 21, 2025 and sell it today you would earn a total of 6,342 from holding Goldman Sachs Group or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Goldman Sachs Group vs. Alcon AG
Performance |
| Timeline |
| Goldman Sachs Group |
| Alcon AG |
Goldman Sachs and Alcon AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Alcon AG
The main advantage of trading using opposite Goldman Sachs and Alcon AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Alcon AG 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 Alcon AG will offset losses from the drop in Alcon AG's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. HSBC Holdings PLC | Goldman Sachs vs. American Express | Goldman Sachs vs. Royal Bank of |
| Alcon AG vs. ResMed Inc | Alcon AG vs. IQVIA Holdings | Alcon AG vs. Agilent Technologies | Alcon AG vs. GE HealthCare Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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