Correlation Between Goldman Sachs and Ellsworth Fund

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Ellsworth Fund 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 Ellsworth Fund 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 Ellsworth Fund, you can compare the effects of market volatilities on Goldman Sachs and Ellsworth Fund 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 Ellsworth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Ellsworth Fund.

Diversification Opportunities for Goldman Sachs and Ellsworth Fund

0.47

Correlation Coefficient

Goldman Sachs  Ellsworth Fund

Very weak diversification

The 3 months correlation between Goldman and Ellsworth is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Small and Ellsworth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Fund 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 Ellsworth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Fund has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Ellsworth Fund go up and down completely randomly.

Pair Corralation between Goldman Sachs and Ellsworth Fund

Assuming the 90 days horizon Goldman Sachs is expected to generate 1.15 times less return on investment than Ellsworth Fund. In addition to that, Goldman Sachs is 1.63 times more volatile than Ellsworth Fund. It trades about 0.16 of its total potential returns per unit of risk. Ellsworth Fund is currently generating about 0.3 per unit of volatility. If you would invest  1,063  in Ellsworth Fund on May 2, 2025 and sell it today you would earn a total of  138.00  from holding Ellsworth Fund or generate 12.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Goldman Sachs Small  vs.  Ellsworth Fund

Goldman Sachs Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Small are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Ellsworth Fund

Risk-Adjusted Performance

Solid

Over the last 90 days Ellsworth Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak technical and fundamental indicators, Ellsworth Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Goldman Sachs and Ellsworth Fund

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

The idea behind Goldman Sachs Small and Ellsworth Fund 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.