Goldman Sachs Correlations

GAPRX Fund  USD 20.91  0.44  2.15%   
The current 90-days correlation between Goldman Sachs Equity and Invesco Energy Fund is 0.45 (i.e., Very weak diversification). The correlation of Goldman Sachs is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Goldman Sachs Correlation With Market

Poor diversification

The correlation between Goldman Sachs Equity and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Equity and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Goldman Sachs Equity. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Moving together with Goldman Mutual Fund

  0.62GCGIX Goldman Sachs LargePairCorr
  0.79GCGVX Goldman Sachs DynamicPairCorr
  0.75GCMRX Goldman Sachs MidPairCorr
  0.75GCMTX Goldman Sachs MidPairCorr
  0.76GCMUX Goldman Sachs MidPairCorr
  0.76GCLLX Goldman Sachs FlexiblePairCorr
  0.72GCLSX Goldman Sachs LargePairCorr
  0.75GCMAX Goldman Sachs MidPairCorr
  0.73GCMCX Goldman Sachs MidPairCorr
  0.77GCRTX Goldman Sachs AbsolutePairCorr
  0.83GCTAX Goldman Sachs TaxPairCorr
  0.83GCTCX Goldman Sachs TaxPairCorr
  0.79GCTIX Goldman Sachs TaxPairCorr
  0.83GCTRX Goldman Sachs TaxPairCorr
  0.83GCTSX Goldman Sachs TaxPairCorr
  0.7GCSAX Goldman Sachs SmallPairCorr
  0.67GCSCX Goldman Sachs SmallPairCorr
  0.7GCSIX Goldman Sachs SmallPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Goldman Mutual Fund performing well and Goldman Sachs Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Goldman Sachs' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.