Correlation Between Al Frank and Goldman Sachs

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

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

Diversification Opportunities for Al Frank and Goldman Sachs

0.0

Correlation Coefficient

Al Frank  Goldman Sachs

Pay attention - limited upside

The 3 months correlation between VALAX and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Al Frank Fund and Goldman Sachs Flexible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Flexible and Al Frank 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 Al Frank Fund 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 Flexible has no effect on the direction of Al Frank i.e., Al Frank and Goldman Sachs go up and down completely randomly.

Pair Corralation between Al Frank and Goldman Sachs

If you would invest (100.00) in Goldman Sachs Flexible on May 17, 2025 and sell it today you would earn a total of  100.00  from holding Goldman Sachs Flexible or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Al Frank Fund  vs.  Goldman Sachs Flexible

Al Frank Fund

Risk-Adjusted Performance

Good

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

Goldman Sachs Flexible

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Flexible are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Al Frank and Goldman Sachs

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

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.