Correlation Between Gabelli Equity and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Osterweis Strategic 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 Osterweis Strategic 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 Osterweis Strategic Investment, you can compare the effects of market volatilities on Gabelli Equity and Osterweis Strategic 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Osterweis Strategic.
Diversification Opportunities for Gabelli Equity and Osterweis Strategic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Osterweis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and Osterweis Strategic Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Osterweis Strategic go up and down completely randomly.
Pair Corralation between Gabelli Equity and Osterweis Strategic
Considering the 90-day investment horizon Gabelli Equity Trust is expected to generate 1.87 times more return on investment than Osterweis Strategic. However, Gabelli Equity is 1.87 times more volatile than Osterweis Strategic Investment. It trades about 0.09 of its potential returns per unit of risk. Osterweis Strategic Investment is currently generating about 0.1 per unit of risk. If you would invest 519.00 in Gabelli Equity Trust on August 29, 2024 and sell it today you would earn a total of 58.00 from holding Gabelli Equity Trust or generate 11.18% 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. Osterweis Strategic Investment
Performance |
| Timeline |
| Gabelli Equity Trust |
| Osterweis Strategic |
Gabelli Equity and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Osterweis Strategic
The main advantage of trading using opposite Gabelli Equity and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Osterweis Strategic 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic'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 |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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