Correlation Between ETC 6 and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both ETC 6 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 ETC 6 and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ETC 6 Meridian and Goldman Sachs Nasdaq 100, you can compare the effects of market volatilities on ETC 6 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 ETC 6 with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETC 6 and Goldman Sachs.

Diversification Opportunities for ETC 6 and Goldman Sachs

-0.38

Correlation Coefficient

ETC 6  Goldman Sachs

Very good diversification

The 3 months correlation between ETC and Goldman is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ETC 6 Meridian and Goldman Sachs Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Nasdaq and ETC 6 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 ETC 6 Meridian 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 Nasdaq has no effect on the direction of ETC 6 i.e., ETC 6 and Goldman Sachs go up and down completely randomly.

Pair Corralation between ETC 6 and Goldman Sachs

Given the investment horizon of 90 days ETC 6 is expected to generate 17.25 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, ETC 6 Meridian is 1.84 times less risky than Goldman Sachs. It trades about 0.01 of its potential returns per unit of risk. Goldman Sachs Nasdaq 100 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  4,960  in Goldman Sachs Nasdaq 100 on September 7, 2025 and sell it today you would earn a total of  374.00  from holding Goldman Sachs Nasdaq 100 or generate 7.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

ETC 6 Meridian  vs.  Goldman Sachs Nasdaq 100

ETC 6 Meridian

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ETC 6 Meridian are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, ETC 6 is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Goldman Sachs Nasdaq

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Nasdaq 100 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with ETC 6 and Goldman Sachs

The main advantage of trading using opposite ETC 6 and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETC 6 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 ETC 6 Meridian and Goldman Sachs Nasdaq 100 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.