Correlation Between Goldman Sachs and Dws Global

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

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

Diversification Opportunities for Goldman Sachs and Dws Global

0.25

Correlation Coefficient

Goldman Sachs  Dws Global

Modest diversification

The 3 months correlation between Goldman and Dws is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Inflation and Dws Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dws Global Macro 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 Inflation are associated (or correlated) with Dws Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dws Global Macro has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Dws Global go up and down completely randomly.

Pair Corralation between Goldman Sachs and Dws Global

Assuming the 90 days horizon Goldman Sachs is expected to generate 113.5 times less return on investment than Dws Global. But when comparing it to its historical volatility, Goldman Sachs Inflation is 1.03 times less risky than Dws Global. It trades about 0.0 of its potential returns per unit of risk. Dws Global Macro is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,056  in Dws Global Macro on March 6, 2025 and sell it today you would earn a total of  10.00  from holding Dws Global Macro or generate 0.95% return on investment over 90 days.

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

Goldman Sachs Inflation  vs.  Dws Global Macro

Goldman Sachs Inflation

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Inflation are ranked lower than 3 (%) 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.

Dws Global Macro

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dws Global Macro are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Dws Global 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 Dws Global

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

The idea behind Goldman Sachs Inflation and Dws Global Macro 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.