Correlation Between Goldman Sachs and Elfun Government
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Elfun Government 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 Elfun Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Small and Elfun Government Money, you can compare the effects of market volatilities on Goldman Sachs and Elfun Government 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 Elfun Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Elfun Government.
Diversification Opportunities for Goldman Sachs and Elfun Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Elfun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Small and Elfun Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elfun Government Money 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 Small are associated (or correlated) with Elfun Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elfun Government Money has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Elfun Government go up and down completely randomly.
Pair Corralation between Goldman Sachs and Elfun Government
Assuming the 90 days horizon Goldman Sachs Small is expected to generate 9.09 times more return on investment than Elfun Government. However, Goldman Sachs is 9.09 times more volatile than Elfun Government Money. It trades about 0.03 of its potential returns per unit of risk. Elfun Government Money is currently generating about 0.04 per unit of risk. If you would invest 2,588 in Goldman Sachs Small on September 14, 2024 and sell it today you would earn a total of 149.00 from holding Goldman Sachs Small or generate 5.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.92% |
Values | Daily Returns |
Goldman Sachs Small vs. Elfun Government Money
Performance |
Timeline |
Goldman Sachs Small |
Elfun Government Money |
Goldman Sachs and Elfun Government Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Elfun Government
The main advantage of trading using opposite Goldman Sachs and Elfun Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Elfun Government 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 Elfun Government will offset losses from the drop in Elfun Government's long position.Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard 500 Index | Elfun Government vs. Vanguard Total Stock | Elfun Government vs. Vanguard Total Stock |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |