Correlation Between First Investors and Gamco Global
Can any of the company-specific risk be diversified away by investing in both First Investors and Gamco 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 First Investors and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Investors Opportunity and Gamco Global Telecommunications, you can compare the effects of market volatilities on First Investors and Gamco 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 First Investors with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Investors and Gamco Global.
Diversification Opportunities for First Investors and Gamco Global
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Gamco is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding First Investors Opportunity and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom and First Investors 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 First Investors Opportunity are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Telecom has no effect on the direction of First Investors i.e., First Investors and Gamco Global go up and down completely randomly.
Pair Corralation between First Investors and Gamco Global
Assuming the 90 days horizon First Investors is expected to generate 1.66 times less return on investment than Gamco Global. In addition to that, First Investors is 1.09 times more volatile than Gamco Global Telecommunications. It trades about 0.06 of its total potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.11 per unit of volatility. If you would invest 1,515 in Gamco Global Telecommunications on September 14, 2024 and sell it today you would earn a total of 879.00 from holding Gamco Global Telecommunications or generate 58.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Investors Opportunity vs. Gamco Global Telecommunication
Performance |
| Timeline |
| First Investors Oppo |
| Gamco Global Telecom |
First Investors and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Investors and Gamco Global
The main advantage of trading using opposite First Investors and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Investors position performs unexpectedly, Gamco 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| First Investors vs. Optimum Small Mid Cap | First Investors vs. Optimum Small Mid Cap | First Investors vs. Ivy Apollo Multi Asset | First Investors vs. Optimum Fixed Income |
| Gamco Global vs. Ab Global Real | Gamco Global vs. Dreyfusstandish Global Fixed | Gamco Global vs. Siit Global Managed | Gamco Global vs. Artisan Global Unconstrained |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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