Correlation Between Goldman Sachs and Upright Assets

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

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

Diversification Opportunities for Goldman Sachs and Upright Assets

0.89

Correlation Coefficient

Goldman Sachs  Upright Assets

Very poor diversification

The 3 months correlation between Goldman and Upright is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Large and Upright Assets Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Assets Allocation 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 Large are associated (or correlated) with Upright Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Assets Allocation has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Upright Assets go up and down completely randomly.

Pair Corralation between Goldman Sachs and Upright Assets

Assuming the 90 days horizon Goldman Sachs Large is expected to generate 0.31 times more return on investment than Upright Assets. However, Goldman Sachs Large is 3.26 times less risky than Upright Assets. It trades about 0.01 of its potential returns per unit of risk. Upright Assets Allocation is currently generating about -0.07 per unit of risk. If you would invest  1,576  in Goldman Sachs Large on December 30, 2024 and sell it today you would earn a total of  7.00  from holding Goldman Sachs Large or generate 0.44% return on investment over 90 days.

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

Goldman Sachs Large  vs.  Upright Assets Allocation

Goldman Sachs Large

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Large are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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.

Upright Assets Allocation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upright Assets Allocation 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 Goldman Sachs and Upright Assets

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

The idea behind Goldman Sachs Large and Upright Assets Allocation 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.