Correlation Between Goldman Sachs and IQ MacKay
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and IQ 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 IQ MacKay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Community and IQ MacKay Municipal, you can compare the effects of market volatilities on Goldman Sachs and IQ 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 IQ MacKay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and IQ MacKay.
Diversification Opportunities for Goldman Sachs and IQ MacKay
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and MMIN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Community and IQ MacKay Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ MacKay Municipal 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 Community are associated (or correlated) with IQ MacKay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ MacKay Municipal has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and IQ MacKay go up and down completely randomly.
Pair Corralation between Goldman Sachs and IQ MacKay
Given the investment horizon of 90 days Goldman Sachs Community is expected to generate 57.99 times more return on investment than IQ MacKay. However, Goldman Sachs is 57.99 times more volatile than IQ MacKay Municipal. It trades about 0.05 of its potential returns per unit of risk. IQ MacKay Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,000.00 in Goldman Sachs Community on September 4, 2024 and sell it today you would earn a total of 3,993 from holding Goldman Sachs Community or generate 399.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 88.89% |
| Values | Daily Returns |
Goldman Sachs Community vs. IQ MacKay Municipal
Performance |
| Timeline |
| Goldman Sachs Community |
| IQ MacKay Municipal |
Goldman Sachs and IQ MacKay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and IQ MacKay
The main advantage of trading using opposite Goldman Sachs and IQ MacKay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, IQ 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 IQ MacKay will offset losses from the drop in IQ MacKay's long position.| Goldman Sachs vs. SSGA Active Trust | Goldman Sachs vs. SPDR Nuveen Municipal | Goldman Sachs vs. iShares Short Maturity | Goldman Sachs vs. First Trust Flexible |
| IQ MacKay vs. IQ MacKay Municipal | IQ MacKay vs. Franklin Liberty Federal | IQ MacKay vs. Columbia Multi Sector Municipal | IQ MacKay vs. Hartford Municipal Opportunities |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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