Correlation Between Goldman Sachs and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Stringer Growth 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 Stringer Growth 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 Stringer Growth Fund, you can compare the effects of market volatilities on Goldman Sachs and Stringer Growth 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 Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Stringer Growth.
Diversification Opportunities for Goldman Sachs and Stringer Growth
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Stringer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Capital and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth 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 Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Stringer Growth go up and down completely randomly.
Pair Corralation between Goldman Sachs and Stringer Growth
Assuming the 90 days horizon Goldman Sachs Capital is expected to generate 1.51 times more return on investment than Stringer Growth. However, Goldman Sachs is 1.51 times more volatile than Stringer Growth Fund. It trades about 0.3 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.25 per unit of risk. If you would invest 3,035 in Goldman Sachs Capital on April 25, 2025 and sell it today you would earn a total of 436.00 from holding Goldman Sachs Capital or generate 14.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Capital vs. Stringer Growth Fund
Performance |
Timeline |
Goldman Sachs Capital |
Stringer Growth |
Goldman Sachs and Stringer Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Stringer Growth
The main advantage of trading using opposite Goldman Sachs and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.Goldman Sachs vs. Franklin Adjustable Government | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. Wt Mutual Fund | Goldman Sachs vs. Virtus Seix Government |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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