Correlation Between Aqr Equity and Goldman Sachs

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

By analyzing existing cross correlation between Aqr Equity Market and Goldman Sachs Financial, you can compare the effects of market volatilities on Aqr Equity and Goldman Sachs 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 Aqr Equity with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Equity and Goldman Sachs.

Diversification Opportunities for Aqr Equity and Goldman Sachs

0.0

Correlation Coefficient

Aqr Equity  Goldman Sachs

Pay attention - limited upside

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

Pair Corralation between Aqr Equity and Goldman Sachs

If you would invest  981.00  in Aqr Equity Market on December 28, 2024 and sell it today you would earn a total of  92.00  from holding Aqr Equity Market or generate 9.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Aqr Equity Market  vs.  Goldman Sachs Financial

Aqr Equity Market

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Equity Market are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Equity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Goldman Sachs Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goldman Sachs Financial 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aqr Equity and Goldman Sachs

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

The idea behind Aqr Equity Market and Goldman Sachs Financial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.