Correlation Between Comstock Capital and The Gabelli
Can any of the company-specific risk be diversified away by investing in both Comstock Capital and The Gabelli 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 Comstock Capital and The Gabelli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comstock Capital Value and The Gabelli Focus, you can compare the effects of market volatilities on Comstock Capital and The Gabelli 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 Comstock Capital with a short position of The Gabelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comstock Capital and The Gabelli.
Diversification Opportunities for Comstock Capital and The Gabelli
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Comstock and The is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Comstock Capital Value and The Gabelli Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Focus and Comstock Capital 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 Comstock Capital Value are associated (or correlated) with The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Focus has no effect on the direction of Comstock Capital i.e., Comstock Capital and The Gabelli go up and down completely randomly.
Pair Corralation between Comstock Capital and The Gabelli
Assuming the 90 days horizon Comstock Capital is expected to generate 4.52 times less return on investment than The Gabelli. But when comparing it to its historical volatility, Comstock Capital Value is 1.8 times less risky than The Gabelli. It trades about 0.19 of its potential returns per unit of risk. The Gabelli Focus is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,707 in The Gabelli Focus on September 1, 2024 and sell it today you would earn a total of 130.00 from holding The Gabelli Focus or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Comstock Capital Value vs. The Gabelli Focus
Performance |
| Timeline |
| Comstock Capital Value |
| Gabelli Focus |
Comstock Capital and The Gabelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comstock Capital and The Gabelli
The main advantage of trading using opposite Comstock Capital and The Gabelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comstock Capital position performs unexpectedly, The Gabelli 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 The Gabelli will offset losses from the drop in The Gabelli's long position.| Comstock Capital vs. Principal Lifetime Hybrid | Comstock Capital vs. Victory Strategic Allocation | Comstock Capital vs. Alternative Asset Allocation | Comstock Capital vs. Qs Large Cap |
| The Gabelli vs. Chase Growth Fund | The Gabelli vs. Nationwide Growth Fund | The Gabelli vs. Vanguard Growth And | The Gabelli vs. Kinetics Small Cap |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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