Correlation Between Goldman Sachs and Mfs Intermediate
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Mfs Intermediate 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 Intermediate 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 Mfs Intermediate High, you can compare the effects of market volatilities on Goldman Sachs and Mfs Intermediate 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 Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Mfs Intermediate.
Diversification Opportunities for Goldman Sachs and Mfs Intermediate
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Mfs is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Small and Mfs Intermediate High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intermediate High 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 Mfs Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intermediate High has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Mfs Intermediate go up and down completely randomly.
Pair Corralation between Goldman Sachs and Mfs Intermediate
Assuming the 90 days horizon Goldman Sachs Small is expected to generate 1.85 times more return on investment than Mfs Intermediate. However, Goldman Sachs is 1.85 times more volatile than Mfs Intermediate High. It trades about -0.02 of its potential returns per unit of risk. Mfs Intermediate High is currently generating about -0.2 per unit of risk. If you would invest 1,432 in Goldman Sachs Small on July 22, 2025 and sell it today you would lose (11.00) from holding Goldman Sachs Small or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Small vs. Mfs Intermediate High
Performance |
| Timeline |
| Goldman Sachs Small |
| Mfs Intermediate High |
Goldman Sachs and Mfs Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Mfs Intermediate
The main advantage of trading using opposite Goldman Sachs and Mfs Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Mfs Intermediate 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 Intermediate will offset losses from the drop in Mfs Intermediate's long position.| Goldman Sachs vs. Growth Allocation Fund | Goldman Sachs vs. Neiman Large Cap | Goldman Sachs vs. Locorr Strategic Allocation | Goldman Sachs vs. Old Westbury Large |
| Mfs Intermediate vs. Walthausen Small Cap | Mfs Intermediate vs. Rbc Small Cap | Mfs Intermediate vs. Plumb Equity Fund | Mfs Intermediate vs. Aberdeen Global IF |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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