Correlation Between Fabxx and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Fabxx and Goldman Sachs 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 Fabxx and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fabxx and Goldman Sachs Flexible, you can compare the effects of market volatilities on Fabxx and Goldman Sachs 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 Fabxx with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fabxx and Goldman Sachs.
Diversification Opportunities for Fabxx and Goldman Sachs
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fabxx and Goldman is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fabxx and Goldman Sachs Flexible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Flexible and Fabxx 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 Fabxx are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Flexible has no effect on the direction of Fabxx i.e., Fabxx and Goldman Sachs go up and down completely randomly.
Pair Corralation between Fabxx and Goldman Sachs
Assuming the 90 days horizon Fabxx is expected to under-perform the Goldman Sachs. In addition to that, Fabxx is 6.19 times more volatile than Goldman Sachs Flexible. It trades about -0.06 of its total potential returns per unit of risk. Goldman Sachs Flexible is currently generating about 0.14 per unit of volatility. If you would invest 1,844 in Goldman Sachs Flexible on September 12, 2024 and sell it today you would earn a total of 526.00 from holding Goldman Sachs Flexible or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fabxx vs. Goldman Sachs Flexible
Performance |
| Timeline |
| Fabxx |
| Goldman Sachs Flexible |
Fabxx and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fabxx and Goldman Sachs
The main advantage of trading using opposite Fabxx and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fabxx position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Fabxx vs. Franklin High Yield | Fabxx vs. Doubleline Yield Opportunities | Fabxx vs. Artisan High Income | Fabxx vs. Bbh Intermediate Municipal |
| Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard 500 Index | Goldman Sachs vs. Vanguard Total Stock | Goldman Sachs vs. Vanguard Total Stock |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |