Correlation Between Goldman Sachs and Voya Multi-manager
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Voya Multi-manager 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 Voya Multi-manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs International and Voya Multi Manager International, you can compare the effects of market volatilities on Goldman Sachs and Voya Multi-manager 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 Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Voya Multi-manager.
Diversification Opportunities for Goldman Sachs and Voya Multi-manager
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Voya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs International and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 International are associated (or correlated) with Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Voya Multi-manager go up and down completely randomly.
Pair Corralation between Goldman Sachs and Voya Multi-manager
Assuming the 90 days horizon Goldman Sachs International is expected to generate 1.09 times more return on investment than Voya Multi-manager. However, Goldman Sachs is 1.09 times more volatile than Voya Multi Manager International. It trades about 0.01 of its potential returns per unit of risk. Voya Multi Manager International is currently generating about 0.0 per unit of risk. If you would invest 1,315 in Goldman Sachs International on September 4, 2024 and sell it today you would earn a total of 2.00 from holding Goldman Sachs International or generate 0.15% 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 International vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Goldman Sachs Intern |
| Voya Multi Manager |
Goldman Sachs and Voya Multi-manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Voya Multi-manager
The main advantage of trading using opposite Goldman Sachs and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Voya Multi-manager 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 Voya Multi-manager will offset losses from the drop in Voya Multi-manager's long position.| Goldman Sachs vs. California Bond Fund | Goldman Sachs vs. Ab Bond Inflation | Goldman Sachs vs. Multisector Bond Sma | Goldman Sachs vs. T Rowe Price |
| Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Bond Index | Voya Multi-manager vs. Voya Limited Maturity | Voya Multi-manager vs. Voya Limited Maturity |
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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