Correlation Between Goldman Sachs and George Putnam
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and George Putnam 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 George Putnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Managed and George Putnam Fund, you can compare the effects of market volatilities on Goldman Sachs and George Putnam 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 George Putnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and George Putnam.
Diversification Opportunities for Goldman Sachs and George Putnam
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOLDMAN and George is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Managed and George Putnam Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Putnam 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 Managed are associated (or correlated) with George Putnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Putnam has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and George Putnam go up and down completely randomly.
Pair Corralation between Goldman Sachs and George Putnam
Assuming the 90 days horizon Goldman Sachs Managed is expected to generate 0.7 times more return on investment than George Putnam. However, Goldman Sachs Managed is 1.42 times less risky than George Putnam. It trades about 0.25 of its potential returns per unit of risk. George Putnam Fund is currently generating about 0.03 per unit of risk. If you would invest 908.00 in Goldman Sachs Managed on September 5, 2024 and sell it today you would earn a total of 30.00 from holding Goldman Sachs Managed or generate 3.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Managed vs. George Putnam Fund
Performance |
Timeline |
Goldman Sachs Managed |
George Putnam |
Goldman Sachs and George Putnam Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and George Putnam
The main advantage of trading using opposite Goldman Sachs and George Putnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, George Putnam 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 George Putnam will offset losses from the drop in George Putnam's long position.Goldman Sachs vs. Fidelity Advisor Energy | Goldman Sachs vs. Firsthand Alternative Energy | Goldman Sachs vs. Franklin Natural Resources | Goldman Sachs vs. Calvert Global Energy |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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