Correlation Between Issachar Fund and Goldman Sachs

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

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

Diversification Opportunities for Issachar Fund and Goldman Sachs

-0.88

Correlation Coefficient

Issachar Fund  Goldman Sachs

Pay attention - limited upside

The 3 months correlation between Issachar and Goldman is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean and Issachar Fund 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 Issachar Fund Class 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 Clean has no effect on the direction of Issachar Fund i.e., Issachar Fund and Goldman Sachs go up and down completely randomly.

Pair Corralation between Issachar Fund and Goldman Sachs

Assuming the 90 days horizon Issachar Fund Class is expected to generate 0.79 times more return on investment than Goldman Sachs. However, Issachar Fund Class is 1.27 times less risky than Goldman Sachs. It trades about 0.22 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.26 per unit of risk. If you would invest  927.00  in Issachar Fund Class on September 18, 2024 and sell it today you would earn a total of  113.00  from holding Issachar Fund Class or generate 12.19% return on investment over 90 days.

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

Issachar Fund Class  vs.  Goldman Sachs Clean

Issachar Fund Class

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Goldman Sachs Clean

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Clean has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental drivers remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Issachar Fund and Goldman Sachs

The main advantage of trading using opposite Issachar Fund and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund 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 Issachar Fund Class and Goldman Sachs Clean 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.