Correlation Between Goldman Sachs and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Strategy Shares 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 Strategy Shares 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 Strategy Shares Monopoly, you can compare the effects of market volatilities on Goldman Sachs and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Strategy Shares.
Diversification Opportunities for Goldman Sachs and Strategy Shares
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Strategy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs ActiveBeta and Strategy Shares Monopoly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares Monopoly 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 Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares Monopoly has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Strategy Shares go up and down completely randomly.
Pair Corralation between Goldman Sachs and Strategy Shares
Given the investment horizon of 90 days Goldman Sachs ActiveBeta is expected to generate 1.17 times more return on investment than Strategy Shares. However, Goldman Sachs is 1.17 times more volatile than Strategy Shares Monopoly. It trades about 0.1 of its potential returns per unit of risk. Strategy Shares Monopoly is currently generating about 0.08 per unit of risk. If you would invest 4,379 in Goldman Sachs ActiveBeta on June 9, 2025 and sell it today you would earn a total of 78.00 from holding Goldman Sachs ActiveBeta or generate 1.78% 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. Strategy Shares Monopoly
Performance |
| Timeline |
| Goldman Sachs ActiveBeta |
| Strategy Shares Monopoly |
Goldman Sachs and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Strategy Shares
The main advantage of trading using opposite Goldman Sachs and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| Goldman Sachs vs. First Trust Japan | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. iShares Currency Hedged |
| Strategy Shares vs. Vanguard Total Stock | Strategy Shares vs. SPDR SP 500 | Strategy Shares vs. iShares Core SP | Strategy Shares vs. Vanguard Total Bond |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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