Correlation Between Goldman Sachs and Mainstay
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mainstay 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Large and Mainstay Sp 500, you can compare the effects of market volatilities on Goldman Sachs and Mainstay 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mainstay.
Diversification Opportunities for Goldman Sachs and Mainstay
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Large and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Large are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mainstay go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mainstay
Assuming the 90 days horizon Goldman Sachs is expected to generate 1.12 times less return on investment than Mainstay. But when comparing it to its historical volatility, Goldman Sachs Large is 1.16 times less risky than Mainstay. It trades about 0.14 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,560 in Mainstay Sp 500 on August 29, 2024 and sell it today you would earn a total of 1,327 from holding Mainstay Sp 500 or generate 23.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Goldman Sachs Large vs. Mainstay Sp 500
Performance |
| Timeline |
| Goldman Sachs Large |
| Mainstay Sp 500 |
Goldman Sachs and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mainstay
The main advantage of trading using opposite Goldman Sachs and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Goldman Sachs vs. Harbor Diversified International | Goldman Sachs vs. Evaluator Conservative Rms | Goldman Sachs vs. Prudential Core Conservative | Goldman Sachs vs. Blackrock Conservative Prprdptfinstttnl |
| Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard 500 Index | Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard Total Stock |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| 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 | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |