Correlation Between China Fund and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both China Fund and Gabelli Utility 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 China Fund and Gabelli Utility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Fund and Gabelli Utility Closed, you can compare the effects of market volatilities on China Fund and Gabelli Utility 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 China Fund with a short position of Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fund and Gabelli Utility.
Diversification Opportunities for China Fund and Gabelli Utility
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Gabelli is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Fund and Gabelli Utility Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility Closed and China 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 China Fund are associated (or correlated) with Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility Closed has no effect on the direction of China Fund i.e., China Fund and Gabelli Utility go up and down completely randomly.
Pair Corralation between China Fund and Gabelli Utility
Considering the 90-day investment horizon China Fund is expected to under-perform the Gabelli Utility. In addition to that, China Fund is 2.01 times more volatile than Gabelli Utility Closed. It trades about -0.19 of its total potential returns per unit of risk. Gabelli Utility Closed is currently generating about 0.18 per unit of volatility. If you would invest 502.00 in Gabelli Utility Closed on August 28, 2024 and sell it today you would earn a total of 22.00 from holding Gabelli Utility Closed or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fund vs. Gabelli Utility Closed
Performance |
| Timeline |
| China Fund |
| Gabelli Utility Closed |
China Fund and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fund and Gabelli Utility
The main advantage of trading using opposite China Fund and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fund position performs unexpectedly, Gabelli Utility 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 Utility will offset losses from the drop in Gabelli Utility's long position.| China Fund vs. Ashmore Group Plc | China Fund vs. Mexico Equity And | China Fund vs. Western Asset Managed | China Fund vs. Blackrock Muniholdings Quality |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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