Correlation Between Goldman Sachs and Delaware Select

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

By analyzing existing cross correlation between Goldman Sachs Mid and Delaware Select Growth, you can compare the effects of market volatilities on Goldman Sachs and Delaware Select 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 Delaware Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Delaware Select.

Diversification Opportunities for Goldman Sachs and Delaware Select

0.0

Correlation Coefficient

Goldman Sachs  Delaware Select

Pay attention - limited upside

The 3 months correlation between Goldman and Delaware is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Mid and Delaware Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Select Growth 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 Mid are associated (or correlated) with Delaware Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Select Growth has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Delaware Select go up and down completely randomly.

Pair Corralation between Goldman Sachs and Delaware Select

If you would invest (100.00) in Delaware Select Growth on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Delaware Select Growth or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Goldman Sachs Mid  vs.  Delaware Select Growth

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.

Delaware Select Growth

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Goldman Sachs and Delaware Select

The main advantage of trading using opposite Goldman Sachs and Delaware Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Delaware Select 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 Delaware Select will offset losses from the drop in Delaware Select's long position.

The idea behind Goldman Sachs Mid and Delaware Select Growth 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.