Correlation Between Goldman Sachs and Vy Oppenheimer
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Vy Oppenheimer 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 Vy Oppenheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Government and Vy Oppenheimer Global, you can compare the effects of market volatilities on Goldman Sachs and Vy Oppenheimer 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 Vy Oppenheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Vy Oppenheimer.
Diversification Opportunities for Goldman Sachs and Vy Oppenheimer
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and IOGPX is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Government and Vy Oppenheimer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Oppenheimer Global 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 Government are associated (or correlated) with Vy Oppenheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Oppenheimer Global has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Vy Oppenheimer go up and down completely randomly.
Pair Corralation between Goldman Sachs and Vy Oppenheimer
Assuming the 90 days horizon Goldman Sachs Government is expected to generate 0.12 times more return on investment than Vy Oppenheimer. However, Goldman Sachs Government is 8.64 times less risky than Vy Oppenheimer. It trades about -0.17 of its potential returns per unit of risk. Vy Oppenheimer Global is currently generating about -0.11 per unit of risk. If you would invest 1,324 in Goldman Sachs Government on September 25, 2024 and sell it today you would lose (45.00) from holding Goldman Sachs Government or give up 3.4% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Government vs. Vy Oppenheimer Global
Performance |
Timeline |
Goldman Sachs Government |
Vy Oppenheimer Global |
Goldman Sachs and Vy Oppenheimer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Vy Oppenheimer
The main advantage of trading using opposite Goldman Sachs and Vy Oppenheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Vy Oppenheimer 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 Vy Oppenheimer will offset losses from the drop in Vy Oppenheimer's long position.Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
Vy Oppenheimer vs. Voya Bond Index | Vy Oppenheimer vs. Voya Bond Index | Vy Oppenheimer vs. Voya Limited Maturity | Vy Oppenheimer vs. Voya Limited Maturity |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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