Correlation Between Goldman Sachs and Calvert Emerging

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

By analyzing existing cross correlation between Goldman Sachs Short Term and Calvert Emerging Markets, you can compare the effects of market volatilities on Goldman Sachs and Calvert Emerging 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Calvert Emerging.

Diversification Opportunities for Goldman Sachs and Calvert Emerging

0.61

Correlation Coefficient

Goldman Sachs  Calvert Emerging

Poor diversification

The 3 months correlation between GOLDMAN and Calvert is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short Term and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Short Term are associated (or correlated) with Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Calvert Emerging go up and down completely randomly.

Pair Corralation between Goldman Sachs and Calvert Emerging

Assuming the 90 days horizon Goldman Sachs Short Term is not expected to generate positive returns. However, Goldman Sachs Short Term is 24.26 times less risky than Calvert Emerging. It waists most of its returns potential to compensate for thr risk taken. Calvert Emerging is generating about -0.01 per unit of risk. If you would invest  1,011  in Goldman Sachs Short Term on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Goldman Sachs Short Term or generate 0.0% return on investment over 90 days.

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

Goldman Sachs Short Term  vs.  Calvert Emerging Markets

Goldman Sachs Short

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Short Term are ranked lower than 11 (%) 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.

Calvert Emerging Markets

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Emerging Markets are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Goldman Sachs and Calvert Emerging

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

The idea behind Goldman Sachs Short Term and Calvert Emerging Markets 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.