Correlation Between Alpine Global and Goldman Sachs

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

By analyzing existing cross correlation between Alpine Global Infrastructure and Goldman Sachs Global, you can compare the effects of market volatilities on Alpine Global 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 Alpine Global with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpine Global and Goldman Sachs.

Diversification Opportunities for Alpine Global and Goldman Sachs

0.74

Correlation Coefficient

Alpine Global  Goldman Sachs

Poor diversification

The 3 months correlation between Alpine and Goldman is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alpine Global Infrastructure and Goldman Sachs Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Global and Alpine Global 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 Alpine Global Infrastructure 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 Global has no effect on the direction of Alpine Global i.e., Alpine Global and Goldman Sachs go up and down completely randomly.

Pair Corralation between Alpine Global and Goldman Sachs

Assuming the 90 days horizon Alpine Global Infrastructure is expected to generate 0.87 times more return on investment than Goldman Sachs. However, Alpine Global Infrastructure is 1.15 times less risky than Goldman Sachs. It trades about 0.18 of its potential returns per unit of risk. Goldman Sachs Global is currently generating about 0.14 per unit of risk. If you would invest  2,187  in Alpine Global Infrastructure on December 22, 2024 and sell it today you would earn a total of  170.00  from holding Alpine Global Infrastructure or generate 7.77% return on investment over 90 days.

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

Alpine Global Infrastructure  vs.  Goldman Sachs Global

Alpine Global Infras

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alpine Global Infrastructure are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Alpine Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Goldman Sachs Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Alpine Global and Goldman Sachs

The main advantage of trading using opposite Alpine Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpine Global 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 Alpine Global Infrastructure and Goldman Sachs Global 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.