Correlation Between Goldman Sachs and Tamburi Investment

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

By analyzing existing cross correlation between The Goldman Sachs and Tamburi Investment Partners, you can compare the effects of market volatilities on Goldman Sachs and Tamburi Investment 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 Tamburi Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Tamburi Investment.

Diversification Opportunities for Goldman Sachs and Tamburi Investment

0.87

Correlation Coefficient

Goldman Sachs  Tamburi Investment

Very poor diversification

The 3 months correlation between Goldman and Tamburi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and Tamburi Investment Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamburi Investment 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 The Goldman Sachs are associated (or correlated) with Tamburi Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamburi Investment has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Tamburi Investment go up and down completely randomly.

Pair Corralation between Goldman Sachs and Tamburi Investment

Assuming the 90 days trading horizon The Goldman Sachs is expected to generate 1.18 times more return on investment than Tamburi Investment. However, Goldman Sachs is 1.18 times more volatile than Tamburi Investment Partners. It trades about 0.04 of its potential returns per unit of risk. Tamburi Investment Partners is currently generating about -0.04 per unit of risk. If you would invest  51,822  in The Goldman Sachs on March 20, 2025 and sell it today you would earn a total of  2,498  from holding The Goldman Sachs or generate 4.82% return on investment over 90 days.

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

The Goldman Sachs  vs.  Tamburi Investment Partners

Goldman Sachs

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in The Goldman Sachs are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Tamburi Investment

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Goldman Sachs and Tamburi Investment

The main advantage of trading using opposite Goldman Sachs and Tamburi Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Tamburi Investment 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 Tamburi Investment will offset losses from the drop in Tamburi Investment's long position.

The idea behind The Goldman Sachs and Tamburi Investment Partners 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.