Correlation Between Goldman Sachs and IndexIQ
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and IndexIQ 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 IndexIQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Access and IndexIQ, you can compare the effects of market volatilities on Goldman Sachs and IndexIQ 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 IndexIQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and IndexIQ.
Diversification Opportunities for Goldman Sachs and IndexIQ
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and IndexIQ is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Access and IndexIQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IndexIQ 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 Access are associated (or correlated) with IndexIQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IndexIQ has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and IndexIQ go up and down completely randomly.
Pair Corralation between Goldman Sachs and IndexIQ
If you would invest 9,948 in Goldman Sachs Access on June 9, 2024 and sell it today you would earn a total of 47.00 from holding Goldman Sachs Access or generate 0.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 4.55% |
Values | Daily Returns |
Goldman Sachs Access vs. IndexIQ
Performance |
Timeline |
Goldman Sachs Access |
IndexIQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goldman Sachs and IndexIQ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and IndexIQ
The main advantage of trading using opposite Goldman Sachs and IndexIQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, IndexIQ 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 IndexIQ will offset losses from the drop in IndexIQ's long position.Goldman Sachs vs. First Trust Low | Goldman Sachs vs. First Trust Senior | Goldman Sachs vs. First Trust TCW | Goldman Sachs vs. First Trust Tactical |
IndexIQ vs. First Trust Low | IndexIQ vs. First Trust Senior | IndexIQ vs. First Trust TCW | IndexIQ vs. First Trust Tactical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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