Correlation Between Atac Inflation and Goldman Sachs

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

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

Diversification Opportunities for Atac Inflation and Goldman Sachs

0.77

Correlation Coefficient

Atac Inflation  Goldman Sachs

Poor diversification

The 3 months correlation between Atac and Goldman is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and Goldman Sachs Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Mid and Atac Inflation 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 Atac Inflation Rotation 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 Mid has no effect on the direction of Atac Inflation i.e., Atac Inflation and Goldman Sachs go up and down completely randomly.

Pair Corralation between Atac Inflation and Goldman Sachs

Assuming the 90 days horizon Atac Inflation Rotation is expected to generate 1.07 times more return on investment than Goldman Sachs. However, Atac Inflation is 1.07 times more volatile than Goldman Sachs Mid. It trades about 0.1 of its potential returns per unit of risk. Goldman Sachs Mid is currently generating about -0.05 per unit of risk. If you would invest  3,245  in Atac Inflation Rotation on December 5, 2024 and sell it today you would earn a total of  112.00  from holding Atac Inflation Rotation or generate 3.45% return on investment over 90 days.

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

Atac Inflation Rotation  vs.  Goldman Sachs Mid

Atac Inflation Rotation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atac Inflation Rotation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Atac Inflation is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Goldman Sachs Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goldman Sachs Mid has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Atac Inflation and Goldman Sachs

The main advantage of trading using opposite Atac Inflation and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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 Atac Inflation Rotation and Goldman Sachs Mid 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.