Correlation Between Goldman Sachs and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Fs Multi-strategy 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 Fs Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Small and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Goldman Sachs and Fs Multi-strategy 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 Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Fs Multi-strategy.
Diversification Opportunities for Goldman Sachs and Fs Multi-strategy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and FSMSX is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Small and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy 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 Small are associated (or correlated) with Fs Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Goldman Sachs and Fs Multi-strategy
Assuming the 90 days horizon Goldman Sachs Small is expected to generate 6.27 times more return on investment than Fs Multi-strategy. However, Goldman Sachs is 6.27 times more volatile than Fs Multi Strategy Alt. It trades about 0.29 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.26 per unit of risk. If you would invest 2,313 in Goldman Sachs Small on April 11, 2025 and sell it today you would earn a total of 524.00 from holding Goldman Sachs Small or generate 22.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Small vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Goldman Sachs Small |
| Fs Multi Strategy |
Goldman Sachs and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Fs Multi-strategy
The main advantage of trading using opposite Goldman Sachs and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Fs Multi-strategy 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 Fs Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.| Goldman Sachs vs. Calvert High Yield | Goldman Sachs vs. Multi Manager High Yield | Goldman Sachs vs. Rbc Bluebay Global | Goldman Sachs vs. Pace High Yield |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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