| GSPQX Fund | | | USD 17.26 0.14 0.82% |
The current 90-days correlation between Goldman Sachs Equity and Virtus Multi Sector Short is 0.03 (i.e., Significant diversification). The correlation of Goldman Sachs is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Goldman Sachs Correlation With Market
Very weak diversification
The correlation between Goldman Sachs Equity and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Equity and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Goldman Sachs Equity. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as
signals in producer price index.