Correlation Between Fs Multi-strategy and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Fs Multi-strategy 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 Multi-strategy 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 Multi Strategy Alt and Goldman Sachs Short, you can compare the effects of market volatilities on Fs Multi-strategy 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 Multi-strategy with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fs Multi-strategy and Goldman Sachs.
Diversification Opportunities for Fs Multi-strategy and Goldman Sachs
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSMMX and Goldman is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fs Multi Strategy Alt and Goldman Sachs Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Short and Fs Multi-strategy 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 Multi Strategy Alt 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 Short has no effect on the direction of Fs Multi-strategy i.e., Fs Multi-strategy and Goldman Sachs go up and down completely randomly.
Pair Corralation between Fs Multi-strategy and Goldman Sachs
Assuming the 90 days horizon Fs Multi Strategy Alt is expected to generate 1.51 times more return on investment than Goldman Sachs. However, Fs Multi-strategy is 1.51 times more volatile than Goldman Sachs Short. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Short is currently generating about 0.09 per unit of risk. If you would invest 1,095 in Fs Multi Strategy Alt on November 2, 2024 and sell it today you would earn a total of 18.00 from holding Fs Multi Strategy Alt or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fs Multi Strategy Alt vs. Goldman Sachs Short
Performance |
| Timeline |
| Fs Multi Strategy |
| Goldman Sachs Short |
Fs Multi-strategy and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fs Multi-strategy and Goldman Sachs
The main advantage of trading using opposite Fs Multi-strategy and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fs Multi-strategy 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 Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Fs Multi Strategy Alt | Fs Multi-strategy vs. Fs Real Asset | Fs Multi-strategy vs. Tiaa Cref Equity Index |
| Goldman Sachs vs. William Blair Emerging | Goldman Sachs vs. Barings Emerging Markets | Goldman Sachs vs. Investec Emerging Markets | Goldman Sachs vs. Pimco Moditiesplus Strategy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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