Correlation Between Barings Emerging and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Goldman Sachs Real, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Goldman Sachs.
Diversification Opportunities for Barings Emerging and Goldman Sachs
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Goldman is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Goldman Sachs Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Real and Barings Emerging 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 Barings Emerging Markets 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 Real has no effect on the direction of Barings Emerging i.e., Barings Emerging and Goldman Sachs go up and down completely randomly.
Pair Corralation between Barings Emerging and Goldman Sachs
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.25 times more return on investment than Goldman Sachs. However, Barings Emerging Markets is 4.08 times less risky than Goldman Sachs. It trades about -0.18 of its potential returns per unit of risk. Goldman Sachs Real is currently generating about -0.18 per unit of risk. If you would invest 771.00 in Barings Emerging Markets on September 24, 2024 and sell it today you would lose (24.00) from holding Barings Emerging Markets or give up 3.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Barings Emerging Markets vs. Goldman Sachs Real
Performance |
Timeline |
Barings Emerging Markets |
Goldman Sachs Real |
Barings Emerging and Goldman Sachs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Emerging and Goldman Sachs
The main advantage of trading using opposite Barings Emerging and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.Barings Emerging vs. Goehring Rozencwajg Resources | Barings Emerging vs. Invesco Energy Fund | Barings Emerging vs. Thrivent Natural Resources | Barings Emerging vs. Short Oil Gas |
Goldman Sachs vs. Realty Income | Goldman Sachs vs. Dynex Capital | Goldman Sachs vs. First Industrial Realty | Goldman Sachs vs. Healthcare Realty Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |