Goldman Sachs owns a basket of stocks with a track record of beating the market and so far this year has been no exception. While the S&P 500 is on track to drop nearly 20% year-end, Goldman’s High Sharpe Ratio basket outperforms that. It’s only down 10% for the year. The basket identifies companies with the highest risk-adjusted potential returns relative to peers. To find the “Sharpe Ratio,” the company divides the return of a given stock by its 12-month consensus price target by the option’s six-month implied volatility. The average stock in the basket is expected to generate a return of about 36%, compared to the average stock in the S&P 500, which is expected to yield a return of 14%. The implied volatility of the average stock in the basket is only slightly higher than that of the average S&P stock (36% vs. 31%). Here are 10 stocks: Dish Network, Global Payments, Zoetis and Amazon are among the names with the highest Sharpe ratios, though David Kostin, head of US equity strategy, admits that the gains Profit from consensus price targets for individual companies is “almost certain”. too high.” “For context, at the index level, we expect the S&P 500 to deliver near-flat returns in 2023 with the index closing next year at 4000,” he said in A recent note. “Our High Sharp Rate Basket is built on the relative rankings of stocks in each sector.” Dish has the highest potential return, 149%, in The number of stocks in the basket relative to its six-month implied volatility is also the highest on the list at 61%.The stock also tops the list of stocks with great upside potential. of CNBC Pro last week and others on Wall Street have said that Dish is perhaps the “biggest opportunity” to increase return on investment.Global payments and Amazon also appear on that list. . – slightly ahead of the food distributor by 0.9. Goldman also added Southwest Airlines and energy stock EQT Corp, both of which have Sharpe ratios above 1.0.