Correlation Between Gabelli Equity and Americafirst Income
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Americafirst Income 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 Americafirst Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Equity Trust and Americafirst Income Fund, you can compare the effects of market volatilities on Gabelli Equity and Americafirst Income 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 Americafirst Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Americafirst Income.
Diversification Opportunities for Gabelli Equity and Americafirst Income
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Americafirst is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and Americafirst Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Income 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 Gabelli Equity Trust are associated (or correlated) with Americafirst Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Income has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Americafirst Income go up and down completely randomly.
Pair Corralation between Gabelli Equity and Americafirst Income
Considering the 90-day investment horizon Gabelli Equity Trust is expected to generate 1.05 times more return on investment than Americafirst Income. However, Gabelli Equity is 1.05 times more volatile than Americafirst Income Fund. It trades about -0.13 of its potential returns per unit of risk. Americafirst Income Fund is currently generating about -0.18 per unit of risk. If you would invest 565.00 in Gabelli Equity Trust on November 28, 2024 and sell it today you would lose (10.00) from holding Gabelli Equity Trust or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Equity Trust vs. Americafirst Income Fund
Performance |
| Timeline |
| Gabelli Equity Trust |
| Americafirst Income |
Gabelli Equity and Americafirst Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Americafirst Income
The main advantage of trading using opposite Gabelli Equity and Americafirst Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Americafirst Income 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 Americafirst Income will offset losses from the drop in Americafirst Income's long position.| Gabelli Equity vs. Gabelli Utility Closed | Gabelli Equity vs. Gabelli MultiMedia Mutual | Gabelli Equity vs. Gabelli Healthcare WellnessRx | Gabelli Equity vs. Liberty All Star |
| Americafirst Income vs. Profunds Large Cap Growth | Americafirst Income vs. Lord Abbett Affiliated | Americafirst Income vs. Old Westbury Large | Americafirst Income vs. Tiaa Cref Large Cap Growth |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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