Correlation Between Goldman Sachs and TD AMERITRADE

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Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and TD AMERITRADE 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 TD AMERITRADE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and TD AMERITRADE HOLDING, you can compare the effects of market volatilities on Goldman Sachs and TD AMERITRADE 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 TD AMERITRADE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and TD AMERITRADE.

Diversification Opportunities for Goldman Sachs and TD AMERITRADE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Goldman and AMTD1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and TD AMERITRADE HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD AMERITRADE HOLDING 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 Group are associated (or correlated) with TD AMERITRADE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD AMERITRADE HOLDING has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and TD AMERITRADE go up and down completely randomly.

Pair Corralation between Goldman Sachs and TD AMERITRADE

If you would invest (100.00)  in TD AMERITRADE HOLDING on April 3, 2022 and sell it today you would earn a total of  100.00  from holding TD AMERITRADE HOLDING or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Goldman Sachs Group  vs.  TD AMERITRADE HOLDING

 Performance (%) 
      Timeline 
Goldman Sachs Group 
Goldman Performance
0 of 100
Over the last 90 days Goldman Sachs Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0269
Payout Ratio
0.16
Forward Annual Dividend Rate
8.0
Dividend Date
2022-06-29
Ex Dividend Date
2022-05-31

Goldman Price Channel

TD AMERITRADE HOLDING 
AMTD1 Performance
0 of 100
Over the last 90 days TD AMERITRADE HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, TD AMERITRADE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Goldman Sachs and TD AMERITRADE Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Goldman Sachs and TD AMERITRADE

The main advantage of trading using opposite Goldman Sachs and TD AMERITRADE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, TD AMERITRADE 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 TD AMERITRADE will offset losses from the drop in TD AMERITRADE's long position.
The idea behind Goldman Sachs Group and TD AMERITRADE HOLDING 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.
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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