Correlation Between Goldman Sachs and Mainstay Total
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mainstay Total 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 Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs High and Mainstay Total Return, you can compare the effects of market volatilities on Goldman Sachs and Mainstay Total 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 Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mainstay Total.
Diversification Opportunities for Goldman Sachs and Mainstay Total
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GOLDMAN and Mainstay is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs High and Mainstay Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Total Return 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 High are associated (or correlated) with Mainstay Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Total Return has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mainstay Total go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mainstay Total
Assuming the 90 days horizon Goldman Sachs is expected to generate 2.07 times less return on investment than Mainstay Total. But when comparing it to its historical volatility, Goldman Sachs High is 2.66 times less risky than Mainstay Total. It trades about 0.14 of its potential returns per unit of risk. Mainstay Total Return is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 921.00 in Mainstay Total Return on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay Total Return or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Goldman Sachs High vs. Mainstay Total Return
Performance |
| Timeline |
| Goldman Sachs High |
| Mainstay Total Return |
Goldman Sachs and Mainstay Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mainstay Total
The main advantage of trading using opposite Goldman Sachs and Mainstay Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mainstay Total 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 Total will offset losses from the drop in Mainstay Total'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 |
| Mainstay Total vs. Fidelity Sai Convertible | Mainstay Total vs. Calamos Dynamic Convertible | Mainstay Total vs. Rationalpier 88 Convertible | Mainstay Total vs. Lord Abbett Convertible |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |