Correlation Between CBH and Gabelli MultiMedia
Can any of the company-specific risk be diversified away by investing in both CBH 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 CBH and Gabelli MultiMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Gabelli MultiMedia Mutual, you can compare the effects of market volatilities on CBH 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 CBH with a short position of Gabelli MultiMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Gabelli MultiMedia.
Diversification Opportunities for CBH and Gabelli MultiMedia
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBH and Gabelli is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Gabelli MultiMedia Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli MultiMedia Mutual and CBH 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 CBH 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 Gabelli MultiMedia Mutual has no effect on the direction of CBH i.e., CBH and Gabelli MultiMedia go up and down completely randomly.
Pair Corralation between CBH and Gabelli MultiMedia
If you would invest 464.00 in Gabelli MultiMedia Mutual on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Gabelli MultiMedia Mutual or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Gabelli MultiMedia Mutual
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gabelli MultiMedia Mutual |
CBH and Gabelli MultiMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Gabelli MultiMedia
The main advantage of trading using opposite CBH and Gabelli MultiMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH 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.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Gabelli MultiMedia vs. Gabelli Equity Trust | Gabelli MultiMedia vs. Gabelli Healthcare WellnessRx | Gabelli MultiMedia vs. Gabelli Convertible And | Gabelli MultiMedia vs. Gabelli Dividend Income |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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