Correlation Between Goldman Sachs and Jhancock Multimanager
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Jhancock Multimanager 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 Jhancock Multimanager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Short and Jhancock Multimanager 2065, you can compare the effects of market volatilities on Goldman Sachs and Jhancock Multimanager 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 Jhancock Multimanager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Jhancock Multimanager.
Diversification Opportunities for Goldman Sachs and Jhancock Multimanager
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldman and Jhancock is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Short and Jhancock Multimanager 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Multimanager 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 Short are associated (or correlated) with Jhancock Multimanager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Multimanager has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Jhancock Multimanager go up and down completely randomly.
Pair Corralation between Goldman Sachs and Jhancock Multimanager
Assuming the 90 days horizon Goldman Sachs Short is expected to generate 0.13 times more return on investment than Jhancock Multimanager. However, Goldman Sachs Short is 7.85 times less risky than Jhancock Multimanager. It trades about 0.21 of its potential returns per unit of risk. Jhancock Multimanager 2065 is currently generating about -0.03 per unit of risk. If you would invest 960.00 in Goldman Sachs Short on December 30, 2024 and sell it today you would earn a total of 14.00 from holding Goldman Sachs Short or generate 1.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Goldman Sachs Short vs. Jhancock Multimanager 2065
Performance |
Timeline |
Goldman Sachs Short |
Jhancock Multimanager |
Goldman Sachs and Jhancock Multimanager Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Jhancock Multimanager
The main advantage of trading using opposite Goldman Sachs and Jhancock Multimanager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Jhancock Multimanager 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 Jhancock Multimanager will offset losses from the drop in Jhancock Multimanager's long position.Goldman Sachs vs. Financials Ultrasector Profund | Goldman Sachs vs. Rmb Mendon Financial | Goldman Sachs vs. Goldman Sachs Financial | Goldman Sachs vs. Blackrock Financial Institutions |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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