Correlation Between Gabelli Equity and Duff
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Duff 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 Duff 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 Duff And Phelps, you can compare the effects of market volatilities on Gabelli Equity and Duff 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 Duff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Duff.
Diversification Opportunities for Gabelli Equity and Duff
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Duff is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and Duff And Phelps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duff And Phelps 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 Duff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duff And Phelps has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Duff go up and down completely randomly.
Pair Corralation between Gabelli Equity and Duff
Considering the 90-day investment horizon Gabelli Equity Trust is expected to generate 0.68 times more return on investment than Duff. However, Gabelli Equity Trust is 1.48 times less risky than Duff. It trades about 0.04 of its potential returns per unit of risk. Duff And Phelps is currently generating about 0.02 per unit of risk. If you would invest 479.00 in Gabelli Equity Trust on August 26, 2024 and sell it today you would earn a total of 90.00 from holding Gabelli Equity Trust or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Equity Trust vs. Duff And Phelps
Performance |
| Timeline |
| Gabelli Equity Trust |
| Duff And Phelps |
Gabelli Equity and Duff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Duff
The main advantage of trading using opposite Gabelli Equity and Duff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Duff 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 Duff will offset losses from the drop in Duff's long position.| Gabelli Equity vs. Cornerstone Strategic Value | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. Orchid Island Capital | Gabelli Equity vs. Guggenheim Strategic Opportunities |
| Duff vs. Cohen Steers Reit | Duff vs. Cohen Steers Qualityome | Duff vs. Pimco Corporate Income | Duff vs. Tekla Healthcare Investors |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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