Correlation Between Api Multi and Goldman Sachs

Can any of the company-specific risk be diversified away by investing in both Api Multi 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 Api Multi and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Api Multi Asset Income and Goldman Sachs Technology, you can compare the effects of market volatilities on Api Multi 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 Api Multi with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Api Multi and Goldman Sachs.

Diversification Opportunities for Api Multi and Goldman Sachs

0.43

Correlation Coefficient

Api Multi  Goldman Sachs

Very weak diversification

The 3 months correlation between Api and Goldman is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Api Multi Asset Income and Goldman Sachs Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Technology and Api Multi 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 Api Multi Asset Income 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 Technology has no effect on the direction of Api Multi i.e., Api Multi and Goldman Sachs go up and down completely randomly.

Pair Corralation between Api Multi and Goldman Sachs

Assuming the 90 days horizon Api Multi is expected to generate 7.51 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Api Multi Asset Income is 6.44 times less risky than Goldman Sachs. It trades about 0.22 of its potential returns per unit of risk. Goldman Sachs Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  3,294  in Goldman Sachs Technology on May 9, 2025 and sell it today you would earn a total of  624.00  from holding Goldman Sachs Technology or generate 18.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Api Multi Asset Income  vs.  Goldman Sachs Technology

Api Multi Asset

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Api Multi Asset Income are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Api Multi is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Goldman Sachs Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Technology are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Api Multi and Goldman Sachs

The main advantage of trading using opposite Api Multi and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Api Multi 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.

The idea behind Api Multi Asset Income and Goldman Sachs Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.