Correlation Between Goldman Sachs and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mainstay Pinestone 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 Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Real and Mainstay Pinestone Global, you can compare the effects of market volatilities on Goldman Sachs and Mainstay Pinestone 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 Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mainstay Pinestone.
Diversification Opportunities for Goldman Sachs and Mainstay Pinestone
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goldman and Mainstay is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Real and Mainstay Pinestone Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone Global 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 Real are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone Global has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mainstay Pinestone
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.13 times less return on investment than Mainstay Pinestone. In addition to that, Goldman Sachs is 1.62 times more volatile than Mainstay Pinestone Global. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Pinestone Global is currently generating about 0.08 per unit of volatility. If you would invest 1,755 in Mainstay Pinestone Global on September 2, 2024 and sell it today you would earn a total of 321.00 from holding Mainstay Pinestone Global or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.31% |
| Values | Daily Returns |
Goldman Sachs Real vs. Mainstay Pinestone Global
Performance |
| Timeline |
| Goldman Sachs Real |
| Mainstay Pinestone Global |
Goldman Sachs and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mainstay Pinestone
The main advantage of trading using opposite Goldman Sachs and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Goldman Sachs vs. Calamos Dynamic Convertible | Goldman Sachs vs. Maryland Tax Free Bond | Goldman Sachs vs. California Bond Fund | Goldman Sachs vs. Ultra Short Fixed Income |
| Mainstay Pinestone vs. Mainstay High Yield | Mainstay Pinestone vs. Mainstay Tax Free | Mainstay Pinestone vs. Mainstay Income Builder | Mainstay Pinestone vs. Mainstay Large Cap |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |