Correlation Between Goldman Sachs and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mainstay Balanced 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 Balanced 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 Balanced Fund, you can compare the effects of market volatilities on Goldman Sachs and Mainstay Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mainstay Balanced.
Diversification Opportunities for Goldman Sachs and Mainstay Balanced
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goldman and Mainstay is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Real and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mainstay Balanced
Assuming the 90 days horizon Goldman Sachs Real is expected to generate 0.84 times more return on investment than Mainstay Balanced. However, Goldman Sachs Real is 1.19 times less risky than Mainstay Balanced. It trades about 0.08 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about -0.22 per unit of risk. If you would invest 1,309 in Goldman Sachs Real on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Goldman Sachs Real or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Real vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Goldman Sachs Real |
| Mainstay Balanced |
Goldman Sachs and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mainstay Balanced
The main advantage of trading using opposite Goldman Sachs and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Goldman Sachs vs. Virtus Multi Sector Short | Goldman Sachs vs. Prudential Short Duration | Goldman Sachs vs. Boston Partners Longshort | Goldman Sachs vs. Siit Ultra Short |
| Mainstay Balanced vs. Deutsche Multi Asset Moderate | Mainstay Balanced vs. Franklin Lifesmart Retirement | Mainstay Balanced vs. Pro Blend Moderate Term | Mainstay Balanced vs. Qs Moderate Growth |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |