Correlation Between Goldman Sachs and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Loomis Sayles 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 Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Access and Loomis Sayles Inflation, you can compare the effects of market volatilities on Goldman Sachs and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Loomis Sayles.
Diversification Opportunities for Goldman Sachs and Loomis Sayles
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Goldman and Loomis is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Access and Loomis Sayles Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Inflation 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 Access are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Inflation has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Loomis Sayles go up and down completely randomly.
Pair Corralation between Goldman Sachs and Loomis Sayles
Given the investment horizon of 90 days Goldman Sachs Access is expected to generate 0.87 times more return on investment than Loomis Sayles. However, Goldman Sachs Access is 1.15 times less risky than Loomis Sayles. It trades about -0.26 of its potential returns per unit of risk. Loomis Sayles Inflation is currently generating about -0.34 per unit of risk. If you would invest 4,892 in Goldman Sachs Access on September 25, 2024 and sell it today you would lose (61.13) from holding Goldman Sachs Access or give up 1.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Access vs. Loomis Sayles Inflation
Performance |
Timeline |
Goldman Sachs Access |
Loomis Sayles Inflation |
Goldman Sachs and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Loomis Sayles
The main advantage of trading using opposite Goldman Sachs and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.Goldman Sachs vs. iShares TIPS Bond | Goldman Sachs vs. JPMorgan Inflation Managed | Goldman Sachs vs. Ionic Inflation Protection |
Loomis Sayles vs. American Funds Inflation | Loomis Sayles vs. T Rowe Price | Loomis Sayles vs. Goldman Sachs Access | Loomis Sayles vs. Blackrock Gbl Emerging |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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