Correlation Between Burnham Holdings and Gabelli Multimedia
Can any of the company-specific risk be diversified away by investing in both Burnham Holdings and Gabelli Multimedia 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 Burnham Holdings and Gabelli Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burnham Holdings PFD and The Gabelli Multimedia, you can compare the effects of market volatilities on Burnham Holdings and Gabelli Multimedia 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 Burnham Holdings with a short position of Gabelli Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burnham Holdings and Gabelli Multimedia.
Diversification Opportunities for Burnham Holdings and Gabelli Multimedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burnham and Gabelli is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burnham Holdings PFD and The Gabelli Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Gabelli Multimedia and Burnham Holdings 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 Burnham Holdings PFD are associated (or correlated) with Gabelli Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Gabelli Multimedia has no effect on the direction of Burnham Holdings i.e., Burnham Holdings and Gabelli Multimedia go up and down completely randomly.
Pair Corralation between Burnham Holdings and Gabelli Multimedia
If you would invest 5,325 in Burnham Holdings PFD on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Burnham Holdings PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Burnham Holdings PFD vs. The Gabelli Multimedia
Performance |
| Timeline |
| Burnham Holdings PFD |
| The Gabelli Multimedia |
Burnham Holdings and Gabelli Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burnham Holdings and Gabelli Multimedia
The main advantage of trading using opposite Burnham Holdings and Gabelli Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burnham Holdings position performs unexpectedly, Gabelli Multimedia 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 Gabelli Multimedia will offset losses from the drop in Gabelli Multimedia's long position.| Burnham Holdings vs. The Gabelli Multimedia | Burnham Holdings vs. The Gabelli Equity | Burnham Holdings vs. Virtus AllianzGI Convertible | Burnham Holdings vs. John Hancock Income |
| Gabelli Multimedia vs. Virtus AllianzGI Convertible | Gabelli Multimedia vs. The Gabelli Equity | Gabelli Multimedia vs. Oxford Lane Capital | Gabelli Multimedia vs. The Gabelli Utility |
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 Stocks Directory module to find actively traded stocks across global markets.
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