Correlation Between ProShares Inflation and Goldman Sachs

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

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

Diversification Opportunities for ProShares Inflation and Goldman Sachs

-0.41

Correlation Coefficient

ProShares Inflation  Goldman Sachs

Very good diversification

The 3 months correlation between ProShares and Goldman is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Inflation Expectatio and Goldman Sachs Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Access and ProShares Inflation 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 ProShares Inflation Expectations 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 Access has no effect on the direction of ProShares Inflation i.e., ProShares Inflation and Goldman Sachs go up and down completely randomly.

Pair Corralation between ProShares Inflation and Goldman Sachs

Given the investment horizon of 90 days ProShares Inflation Expectations is expected to under-perform the Goldman Sachs. In addition to that, ProShares Inflation is 1.69 times more volatile than Goldman Sachs Access. It trades about -0.09 of its total potential returns per unit of risk. Goldman Sachs Access is currently generating about 0.21 per unit of volatility. If you would invest  4,435  in Goldman Sachs Access on July 18, 2025 and sell it today you would earn a total of  118.00  from holding Goldman Sachs Access or generate 2.66% return on investment over 90 days.

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

ProShares Inflation Expectatio  vs.  Goldman Sachs Access

ProShares Inflation

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares Inflation Expectations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ProShares Inflation is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Goldman Sachs Access

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Access are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat 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.

Pair Trading with ProShares Inflation and Goldman Sachs

The main advantage of trading using opposite ProShares Inflation and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Inflation 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 ProShares Inflation Expectations and Goldman Sachs Access 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.