Correlation Between Ellsworth Convertible and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible and Gabelli Global 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 Ellsworth Convertible and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellsworth Convertible Growth and Gabelli Global Small, you can compare the effects of market volatilities on Ellsworth Convertible and Gabelli Global 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 Ellsworth Convertible with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Gabelli Global.
Diversification Opportunities for Ellsworth Convertible and Gabelli Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ellsworth and Gabelli is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth and Gabelli Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Small and Ellsworth Convertible 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 Ellsworth Convertible Growth are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Small has no effect on the direction of Ellsworth Convertible i.e., Ellsworth Convertible and Gabelli Global go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Gabelli Global
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 0.83 times more return on investment than Gabelli Global. However, Ellsworth Convertible Growth is 1.21 times less risky than Gabelli Global. It trades about 0.47 of its potential returns per unit of risk. Gabelli Global Small is currently generating about 0.32 per unit of risk. If you would invest 911.00 in Ellsworth Convertible Growth on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Ellsworth Convertible Growth or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. Gabelli Global Small
Performance |
| Timeline |
| Ellsworth Convertible |
| Gabelli Global Small |
Ellsworth Convertible and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Gabelli Global
The main advantage of trading using opposite Ellsworth Convertible and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible position performs unexpectedly, Gabelli Global 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 Global will offset losses from the drop in Gabelli Global's long position.| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
| Gabelli Global vs. MFS Investment Grade | Gabelli Global vs. Invesco High Income | Gabelli Global vs. Eaton Vance National | Gabelli Global vs. Nuveen California Select |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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