Correlation Between Highland Global and Goldman Sachs

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

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

Diversification Opportunities for Highland Global and Goldman Sachs

0.81

Correlation Coefficient

Highland Global  Goldman Sachs

Very poor diversification

The 3 months correlation between Highland and Goldman is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Goldman Sachs ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ETF and Highland Global 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 Highland Global Allocation 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 ETF has no effect on the direction of Highland Global i.e., Highland Global and Goldman Sachs go up and down completely randomly.

Pair Corralation between Highland Global and Goldman Sachs

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 1.53 times more return on investment than Goldman Sachs. However, Highland Global is 1.53 times more volatile than Goldman Sachs ETF. It trades about 0.23 of its potential returns per unit of risk. Goldman Sachs ETF is currently generating about 0.11 per unit of risk. If you would invest  810.00  in Highland Global Allocation on July 24, 2025 and sell it today you would earn a total of  184.00  from holding Highland Global Allocation or generate 22.72% return on investment over 90 days.

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

Highland Global Allocation  vs.  Goldman Sachs ETF

Highland Global Allo

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat unsteady essential indicators, Highland Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs ETF

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs ETF are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Highland Global and Goldman Sachs

The main advantage of trading using opposite Highland Global and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highland Global 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 Highland Global Allocation and Goldman Sachs ETF 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.