Correlation Between Goldman Sachs and Touchstone International

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

By analyzing existing cross correlation between Goldman Sachs Tax Managed and Touchstone International Equity, you can compare the effects of market volatilities on Goldman Sachs and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Touchstone International.

Diversification Opportunities for Goldman Sachs and Touchstone International

0.0

Correlation Coefficient

Goldman Sachs  Touchstone International

Pay attention - limited upside

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

Pair Corralation between Goldman Sachs and Touchstone International

If you would invest  0.00  in Goldman Sachs Tax Managed on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Goldman Sachs Tax Managed or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Goldman Sachs Tax Managed  vs.  Touchstone International Equit

Goldman Sachs Tax

Risk-Adjusted Performance

0 of 100

Insignificant

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

Touchstone International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Touchstone International Equity 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 forward indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Goldman Sachs and Touchstone International

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

The idea behind Goldman Sachs Tax Managed and Touchstone International Equity 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.