Correlation Between Goldman Sachs and Allianz Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Allianz 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 Allianz Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Target and Allianz Global Investors, you can compare the effects of market volatilities on Goldman Sachs and Allianz 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 Allianz Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Allianz Global.
Diversification Opportunities for Goldman Sachs and Allianz Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Allianz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Target and Allianz Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Global Investors 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 Target are associated (or correlated) with Allianz Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Global Investors has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Allianz Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Allianz Global
If you would invest (100.00) in Allianz Global Investors on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Allianz Global Investors or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Goldman Sachs Target vs. Allianz Global Investors
Performance |
| Timeline |
| Goldman Sachs Target |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Allianz Global Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and Allianz Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Allianz Global
The main advantage of trading using opposite Goldman Sachs and Allianz Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Allianz 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 Allianz Global will offset losses from the drop in Allianz Global's long position.| Goldman Sachs vs. Franklin High Yield | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. T Rowe Price | Goldman Sachs vs. Ishares Municipal Bond |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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