Correlation Between Goldman Sachs and Ab Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ab Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs High and Ab Global Risk, you can compare the effects of market volatilities on Goldman Sachs and Ab Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ab Global.
Diversification Opportunities for Goldman Sachs and Ab Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GOLDMAN and CABIX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs High and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global 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 High are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ab Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Ab Global
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.65 times less return on investment than Ab Global. But when comparing it to its historical volatility, Goldman Sachs High is 1.74 times less risky than Ab Global. It trades about 0.12 of its potential returns per unit of risk. Ab Global Risk is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,527 in Ab Global Risk on March 26, 2025 and sell it today you would earn a total of 64.00 from holding Ab Global Risk or generate 4.19% 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 High vs. Ab Global Risk
Performance |
| Timeline |
| Goldman Sachs High |
| Ab Global Risk |
Goldman Sachs and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Ab Global
The main advantage of trading using opposite Goldman Sachs and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Ab Global 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 Global will offset losses from the drop in Ab Global's long position.| Goldman Sachs vs. Mondrian Emerging Markets | Goldman Sachs vs. Dodge Cox Emerging | Goldman Sachs vs. Goldman Sachs Emerging | Goldman Sachs vs. Investec Emerging Markets |
| Ab Global vs. Pnc Balanced Allocation | Ab Global vs. Guidemark Large Cap | Ab Global vs. Federated Mdt Large | Ab Global vs. Thrivent Large Cap |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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