Correlation Between Ellsworth Convertible and Gabelli Utility
Can any of the company-specific risk be diversified away by investing in both Ellsworth Convertible 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 Ellsworth Convertible and Gabelli Utility 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 The Gabelli Utility, you can compare the effects of market volatilities on Ellsworth Convertible 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 Ellsworth Convertible with a short position of Gabelli Utility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellsworth Convertible and Gabelli Utility.
Diversification Opportunities for Ellsworth Convertible and Gabelli Utility
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ellsworth and Gabelli is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ellsworth Convertible Growth and The Gabelli Utility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility 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 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 has no effect on the direction of Ellsworth Convertible i.e., Ellsworth Convertible and Gabelli Utility go up and down completely randomly.
Pair Corralation between Ellsworth Convertible and Gabelli Utility
Considering the 90-day investment horizon Ellsworth Convertible Growth is expected to generate 1.27 times more return on investment than Gabelli Utility. However, Ellsworth Convertible is 1.27 times more volatile than The Gabelli Utility. It trades about 0.05 of its potential returns per unit of risk. The Gabelli Utility is currently generating about 0.03 per unit of risk. If you would invest 788.00 in Ellsworth Convertible Growth on November 2, 2024 and sell it today you would earn a total of 218.00 from holding Ellsworth Convertible Growth or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellsworth Convertible Growth vs. The Gabelli Utility
Performance |
| Timeline |
| Ellsworth Convertible |
| Gabelli Utility |
Ellsworth Convertible and Gabelli Utility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellsworth Convertible and Gabelli Utility
The main advantage of trading using opposite Ellsworth Convertible and Gabelli Utility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellsworth Convertible 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.| 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 Utility vs. The Gabelli Equity | Gabelli Utility vs. Virtus AllianzGI Convertible | Gabelli Utility vs. The Gabelli Equity | Gabelli Utility vs. Oxford Lane Capital |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance |