Correlation Between Mainstay Servative and Goldman Sachs

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

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

Diversification Opportunities for Mainstay Servative and Goldman Sachs

-0.65

Correlation Coefficient

Mainstay Servative  Goldman Sachs

Excellent diversification

The 3 months correlation between Mainstay and Goldman is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Servative Allocation and Goldman Sachs Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Small and Mainstay Servative 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 Mainstay Servative Allocation 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 Small has no effect on the direction of Mainstay Servative i.e., Mainstay Servative and Goldman Sachs go up and down completely randomly.

Pair Corralation between Mainstay Servative and Goldman Sachs

If you would invest  5,447  in Goldman Sachs Small on July 18, 2025 and sell it today you would earn a total of  678.00  from holding Goldman Sachs Small or generate 12.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Mainstay Servative Allocation  vs.  Goldman Sachs Small

Mainstay Servative

Risk-Adjusted Performance

Weakest

Over the last 90 days Mainstay Servative Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Mainstay Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Goldman Sachs Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Small are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Mainstay Servative and Goldman Sachs

The main advantage of trading using opposite Mainstay Servative and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Servative 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 Mainstay Servative Allocation and Goldman Sachs Small 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.