Correlation Between ATT and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both ATT and Goldman Sachs 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 ATT and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Goldman Sachs Small, you can compare the effects of market volatilities on ATT and Goldman Sachs 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 ATT with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Goldman Sachs.
Diversification Opportunities for ATT and Goldman Sachs
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATT and Goldman is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small and ATT 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 ATT Inc are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Small has no effect on the direction of ATT i.e., ATT and Goldman Sachs go up and down completely randomly.
Pair Corralation between ATT and Goldman Sachs
Taking into account the 90-day investment horizon ATT is expected to generate 1.5 times less return on investment than Goldman Sachs. In addition to that, ATT is 1.24 times more volatile than Goldman Sachs Small. It trades about 0.02 of its total potential returns per unit of risk. Goldman Sachs Small is currently generating about 0.03 per unit of volatility. If you would invest 3,123 in Goldman Sachs Small on August 14, 2025 and sell it today you would earn a total of 19.00 from holding Goldman Sachs Small or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Goldman Sachs Small
Performance |
| Timeline |
| ATT Inc |
| Goldman Sachs Small |
ATT and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Goldman Sachs
The main advantage of trading using opposite ATT and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.The idea behind ATT Inc and Goldman Sachs Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Goldman Sachs vs. Intermediate Term Bond Fund | Goldman Sachs vs. Bbh Intermediate Municipal | Goldman Sachs vs. California Bond Fund | Goldman Sachs vs. Versatile Bond Portfolio |
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..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |