Correlation Between Gabelli Equity and Oaktree Capital
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Oaktree Capital 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 Gabelli Equity and Oaktree Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Equity and Oaktree Capital Group, you can compare the effects of market volatilities on Gabelli Equity and Oaktree Capital 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 Gabelli Equity with a short position of Oaktree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Oaktree Capital.
Diversification Opportunities for Gabelli Equity and Oaktree Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Oaktree is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and Oaktree Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Capital Group and Gabelli Equity 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 The Gabelli Equity are associated (or correlated) with Oaktree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Capital Group has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Oaktree Capital go up and down completely randomly.
Pair Corralation between Gabelli Equity and Oaktree Capital
Assuming the 90 days trading horizon The Gabelli Equity is expected to generate 0.49 times more return on investment than Oaktree Capital. However, The Gabelli Equity is 2.04 times less risky than Oaktree Capital. It trades about 0.05 of its potential returns per unit of risk. Oaktree Capital Group is currently generating about 0.01 per unit of risk. If you would invest 1,974 in The Gabelli Equity on August 24, 2024 and sell it today you would earn a total of 336.00 from holding The Gabelli Equity or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Equity vs. Oaktree Capital Group
Performance |
| Timeline |
| Gabelli Equity |
| Oaktree Capital Group |
Gabelli Equity and Oaktree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Oaktree Capital
The main advantage of trading using opposite Gabelli Equity and Oaktree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Oaktree Capital 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 Oaktree Capital will offset losses from the drop in Oaktree Capital's long position.| Gabelli Equity vs. Virtus AllianzGI Convertible | Gabelli Equity vs. The Gabelli Equity | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. The Gabelli Utility |
| Oaktree Capital vs. The Gabelli Multimedia | Oaktree Capital vs. The Gabelli Equity | Oaktree Capital vs. Virtus AllianzGI Convertible | Oaktree Capital vs. Tri Continental PFD |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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