Correlation Between Goldman Sachs and Fs Multi
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Fs Multi 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 Goldman Sachs and Fs Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Absolute and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Goldman Sachs and Fs Multi 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 Goldman Sachs with a short position of Fs Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Fs Multi.
Diversification Opportunities for Goldman Sachs and Fs Multi
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and FSMSX is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Absolute and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Goldman Sachs 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 Goldman Sachs Absolute are associated (or correlated) with Fs Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Fs Multi go up and down completely randomly.
Pair Corralation between Goldman Sachs and Fs Multi
Assuming the 90 days horizon Goldman Sachs Absolute is expected to generate 1.08 times more return on investment than Fs Multi. However, Goldman Sachs is 1.08 times more volatile than Fs Multi Strategy Alt. It trades about 0.35 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.33 per unit of risk. If you would invest 855.00 in Goldman Sachs Absolute on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Goldman Sachs Absolute or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Absolute vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Goldman Sachs Absolute |
| Fs Multi Strategy |
Goldman Sachs and Fs Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Fs Multi
The main advantage of trading using opposite Goldman Sachs and Fs Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Fs Multi 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 Fs Multi will offset losses from the drop in Fs Multi's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| Fs Multi vs. Vy Jpmorgan Emerging | Fs Multi vs. Black Oak Emerging | Fs Multi vs. Rbc Emerging Markets | Fs Multi vs. Origin Emerging Markets |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |