Correlation Between Goldman Sachs and Mfs Utilities
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mfs Utilities 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 Mfs Utilities 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 Mfs Utilities Fund, you can compare the effects of market volatilities on Goldman Sachs and Mfs Utilities 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 Mfs Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mfs Utilities.
Diversification Opportunities for Goldman Sachs and Mfs Utilities
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Mfs is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Large and Mfs Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Utilities 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 Mfs Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Utilities has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mfs Utilities go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mfs Utilities
Assuming the 90 days horizon Goldman Sachs Large is expected to generate 2.16 times more return on investment than Mfs Utilities. However, Goldman Sachs is 2.16 times more volatile than Mfs Utilities Fund. It trades about -0.01 of its potential returns per unit of risk. Mfs Utilities Fund is currently generating about -0.05 per unit of risk. If you would invest 3,024 in Goldman Sachs Large on January 10, 2025 and sell it today you would lose (54.00) from holding Goldman Sachs Large or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Goldman Sachs Large vs. Mfs Utilities Fund
Performance |
| Timeline |
| Goldman Sachs Large |
| Mfs Utilities |
Goldman Sachs and Mfs Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mfs Utilities
The main advantage of trading using opposite Goldman Sachs and Mfs Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mfs Utilities 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 Mfs Utilities will offset losses from the drop in Mfs Utilities' long position.| Goldman Sachs vs. Chartwell Short Duration | Goldman Sachs vs. Gmo High Yield | Goldman Sachs vs. Metropolitan West High | Goldman Sachs vs. T Rowe Price |
| Mfs Utilities vs. Dominion Energy | Mfs Utilities vs. Consolidated Edison | Mfs Utilities vs. Eversource Energy | Mfs Utilities vs. FirstEnergy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |