Correlation Between Dunham Large and Gabelli Gold
Can any of the company-specific risk be diversified away by investing in both Dunham Large and Gabelli Gold 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 Dunham Large and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Large Cap and Gabelli Gold Fund, you can compare the effects of market volatilities on Dunham Large and Gabelli Gold 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 Dunham Large with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Large and Gabelli Gold.
Diversification Opportunities for Dunham Large and Gabelli Gold
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dunham and Gabelli is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Large Cap and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Dunham Large 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 Dunham Large Cap are associated (or correlated) with Gabelli Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Gold has no effect on the direction of Dunham Large i.e., Dunham Large and Gabelli Gold go up and down completely randomly.
Pair Corralation between Dunham Large and Gabelli Gold
Assuming the 90 days horizon Dunham Large Cap is expected to under-perform the Gabelli Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dunham Large Cap is 3.8 times less risky than Gabelli Gold. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Gabelli Gold Fund is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,172 in Gabelli Gold Fund on September 19, 2024 and sell it today you would earn a total of 11.00 from holding Gabelli Gold Fund or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham Large Cap vs. Gabelli Gold Fund
Performance |
| Timeline |
| Dunham Large Cap |
| Gabelli Gold |
Dunham Large and Gabelli Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Large and Gabelli Gold
The main advantage of trading using opposite Dunham Large and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Large position performs unexpectedly, Gabelli Gold 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 Gold will offset losses from the drop in Gabelli Gold's long position.| Dunham Large vs. Dunham Dynamic Macro | Dunham Large vs. Dunham Appreciation Income | Dunham Large vs. Dunham Porategovernment Bond | Dunham Large vs. Dunham Small Cap |
| Gabelli Gold vs. Transamerica Large Cap | Gabelli Gold vs. Dunham Large Cap | Gabelli Gold vs. Jhancock Disciplined Value | Gabelli Gold vs. American Mutual Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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