Correlation Between Goldman Sachs and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mainstay Mackay 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 Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Short and Mainstay Mackay Short, you can compare the effects of market volatilities on Goldman Sachs and Mainstay Mackay 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 Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mainstay Mackay.
Diversification Opportunities for Goldman Sachs and Mainstay Mackay
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Mainstay Mackay Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Short 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 Short are associated (or correlated) with Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Short has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mainstay Mackay
Assuming the 90 days horizon Goldman Sachs Short is expected to generate 0.95 times more return on investment than Mainstay Mackay. However, Goldman Sachs Short is 1.05 times less risky than Mainstay Mackay. It trades about 0.12 of its potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.1 per unit of risk. If you would invest 979.00 in Goldman Sachs Short on November 27, 2024 and sell it today you would earn a total of 58.00 from holding Goldman Sachs Short or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Short vs. Mainstay Mackay Short
Performance |
| Timeline |
| Goldman Sachs Short |
| Mainstay Mackay Short |
Goldman Sachs and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mainstay Mackay
The main advantage of trading using opposite Goldman Sachs and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay's long position.| Goldman Sachs vs. Pace International Emerging | Goldman Sachs vs. Pnc Emerging Markets | Goldman Sachs vs. Siit Emerging Markets | Goldman Sachs vs. Embark Commodity Strategy |
| Mainstay Mackay vs. Tax Managed International Equity | Mainstay Mackay vs. Transamerica Funds | Mainstay Mackay vs. Guidemark E Fixed | Mainstay Mackay vs. Doubleline 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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