Correlation Between Goldman Sachs and Doubleline Opportunistic

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Doubleline Opportunistic 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 Doubleline Opportunistic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goldman Sachs Physical and Doubleline Opportunistic Credit, you can compare the effects of market volatilities on Goldman Sachs and Doubleline Opportunistic 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 Doubleline Opportunistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Doubleline Opportunistic.

Diversification Opportunities for Goldman Sachs and Doubleline Opportunistic

-0.64

Correlation Coefficient

Goldman Sachs  Doubleline Opportunistic

Excellent diversification

The 3 months correlation between Goldman and Doubleline is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Physical and Doubleline Opportunistic Credi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Opportunistic 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 Physical are associated (or correlated) with Doubleline Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Opportunistic has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Doubleline Opportunistic go up and down completely randomly.

Pair Corralation between Goldman Sachs and Doubleline Opportunistic

Given the investment horizon of 90 days Goldman Sachs Physical is expected to generate 1.26 times more return on investment than Doubleline Opportunistic. However, Goldman Sachs is 1.26 times more volatile than Doubleline Opportunistic Credit. It trades about 0.09 of its potential returns per unit of risk. Doubleline Opportunistic Credit is currently generating about 0.07 per unit of risk. If you would invest  1,766  in Goldman Sachs Physical on September 2, 2024 and sell it today you would earn a total of  864.00  from holding Goldman Sachs Physical or generate 48.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Goldman Sachs Physical  vs.  Doubleline Opportunistic Credi

Goldman Sachs Physical

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Physical are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Doubleline Opportunistic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Opportunistic Credit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Doubleline Opportunistic is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Goldman Sachs and Doubleline Opportunistic

The main advantage of trading using opposite Goldman Sachs and Doubleline Opportunistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Doubleline Opportunistic 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 Doubleline Opportunistic will offset losses from the drop in Doubleline Opportunistic's long position.

The idea behind Goldman Sachs Physical and Doubleline Opportunistic Credit 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.