Correlation Between Fs Managed and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Fs Managed 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 Fs Managed and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fs Managed Futures and Goldman Sachs Focused, you can compare the effects of market volatilities on Fs Managed 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 Fs Managed with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Managed and Goldman Sachs.
Diversification Opportunities for Fs Managed and Goldman Sachs
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FMFFX and Goldman is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fs Managed Futures and Goldman Sachs Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Focused and Fs Managed 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 Fs Managed Futures 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 Focused has no effect on the direction of Fs Managed i.e., Fs Managed and Goldman Sachs go up and down completely randomly.
Pair Corralation between Fs Managed and Goldman Sachs
Assuming the 90 days horizon Fs Managed Futures is expected to under-perform the Goldman Sachs. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fs Managed Futures is 1.09 times less risky than Goldman Sachs. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Goldman Sachs Focused is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,310 in Goldman Sachs Focused on August 28, 2024 and sell it today you would earn a total of 426.00 from holding Goldman Sachs Focused or generate 32.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.66% |
| Values | Daily Returns |
Fs Managed Futures vs. Goldman Sachs Focused
Performance |
| Timeline |
| Fs Managed Futures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Goldman Sachs Focused |
Fs Managed and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Managed and Goldman Sachs
The main advantage of trading using opposite Fs Managed and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Managed 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.| Fs Managed vs. Investec Emerging Markets | Fs Managed vs. Ashmore Emerging Markets | Fs Managed vs. Shelton Emerging Markets | Fs Managed vs. Artisan Emerging Markets |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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