Correlation Between Federated Premier and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Federated Premier 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 Federated Premier and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Premier Municipal and Gabelli Global Small, you can compare the effects of market volatilities on Federated Premier 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 Federated Premier with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Gabelli Global.
Diversification Opportunities for Federated Premier and Gabelli Global
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Gabelli is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal 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 Federated Premier 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 Federated Premier Municipal 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 Federated Premier i.e., Federated Premier and Gabelli Global go up and down completely randomly.
Pair Corralation between Federated Premier and Gabelli Global
Considering the 90-day investment horizon Federated Premier Municipal is expected to under-perform the Gabelli Global. But the fund apears to be less risky and, when comparing its historical volatility, Federated Premier Municipal is 1.5 times less risky than Gabelli Global. The fund trades about -0.06 of its potential returns per unit of risk. The Gabelli Global Small is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,233 in Gabelli Global Small on August 29, 2024 and sell it today you would earn a total of 70.00 from holding Gabelli Global Small or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Federated Premier Municipal vs. Gabelli Global Small
Performance |
| Timeline |
| Federated Premier |
| Gabelli Global Small |
Federated Premier and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Gabelli Global
The main advantage of trading using opposite Federated Premier and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier 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.| Federated Premier vs. Gabelli Global Small | Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance National | Federated Premier vs. GAMCO Natural Resources |
| Gabelli Global vs. Invesco High Income | Gabelli Global vs. Blackrock Muniholdings Ny | Gabelli Global vs. Nuveen California Select | Gabelli Global vs. MFS Investment Grade |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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