Correlation Between IShares MSCI and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and Goldman Sachs 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 IShares MSCI and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Spain and Goldman Sachs MarketBeta, you can compare the effects of market volatilities on IShares MSCI and Goldman Sachs 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 IShares MSCI with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and Goldman Sachs.
Diversification Opportunities for IShares MSCI and Goldman Sachs
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IShares and Goldman is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Spain and Goldman Sachs MarketBeta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs MarketBeta and IShares MSCI 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 iShares MSCI Spain are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs MarketBeta has no effect on the direction of IShares MSCI i.e., IShares MSCI and Goldman Sachs go up and down completely randomly.
Pair Corralation between IShares MSCI and Goldman Sachs
Considering the 90-day investment horizon iShares MSCI Spain is expected to generate 1.16 times more return on investment than Goldman Sachs. However, IShares MSCI is 1.16 times more volatile than Goldman Sachs MarketBeta. It trades about 0.15 of its potential returns per unit of risk. Goldman Sachs MarketBeta is currently generating about 0.15 per unit of risk. If you would invest 4,884 in iShares MSCI Spain on August 15, 2025 and sell it today you would earn a total of 368.00 from holding iShares MSCI Spain or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares MSCI Spain vs. Goldman Sachs MarketBeta
Performance |
| Timeline |
| iShares MSCI Spain |
| Goldman Sachs MarketBeta |
IShares MSCI and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and Goldman Sachs
The main advantage of trading using opposite IShares MSCI and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| IShares MSCI vs. iShares MSCI USA | IShares MSCI vs. iShares MSCI Switzerland | IShares MSCI vs. iShares MSCI Emerging | IShares MSCI vs. Pacer Developed Markets |
| Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Goldman Sachs ActiveBeta | Goldman Sachs vs. Hartford Multifactor Developed | Goldman Sachs vs. Direxion NASDAQ 100 Equal |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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