Correlation Between Goldman Sachs and SYNTHETIC FIXED

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

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

Diversification Opportunities for Goldman Sachs and SYNTHETIC FIXED

0.0

Correlation Coefficient

Goldman Sachs  SYNTHETIC FIXED

Pay attention - limited upside

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

Pair Corralation between Goldman Sachs and SYNTHETIC FIXED

If you would invest  2,396  in Goldman Sachs Capital on December 5, 2024 and sell it today you would earn a total of  204.00  from holding Goldman Sachs Capital or generate 8.51% return on investment over 90 days.

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

Goldman Sachs Capital  vs.  SYNTHETIC FIXED INCOME

Goldman Sachs Capital

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Capital are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental drivers, Goldman Sachs is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

SYNTHETIC FIXED INCOME

Risk-Adjusted Performance

Very Weak

Over the last 90 days SYNTHETIC FIXED INCOME has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking indicators, SYNTHETIC FIXED is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Goldman Sachs and SYNTHETIC FIXED

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

The idea behind Goldman Sachs Capital and SYNTHETIC FIXED INCOME 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.