Correlation Between The Gabelli and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both The Gabelli and Teton Westwood 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 The Gabelli and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Asset and Teton Westwood Equity, you can compare the effects of market volatilities on The Gabelli and Teton Westwood 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 The Gabelli with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and Teton Westwood.
Diversification Opportunities for The Gabelli and Teton Westwood
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and Teton is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Asset and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Equity and The Gabelli 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 Asset are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of The Gabelli i.e., The Gabelli and Teton Westwood go up and down completely randomly.
Pair Corralation between The Gabelli and Teton Westwood
Assuming the 90 days horizon The Gabelli Asset is expected to generate 0.42 times more return on investment than Teton Westwood. However, The Gabelli Asset is 2.41 times less risky than Teton Westwood. It trades about 0.35 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about -0.05 per unit of risk. If you would invest 5,261 in The Gabelli Asset on September 1, 2024 and sell it today you would earn a total of 324.00 from holding The Gabelli Asset or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Asset vs. Teton Westwood Equity
Performance |
| Timeline |
| Gabelli Asset |
| Teton Westwood Equity |
The Gabelli and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and Teton Westwood
The main advantage of trading using opposite The Gabelli and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| The Gabelli vs. Gabelli Esg Fund | The Gabelli vs. Gabelli Global Financial | The Gabelli vs. The Gabelli Equity | The Gabelli vs. Enterprise Mergers And |
| Teton Westwood vs. Teton Westwood Balanced | Teton Westwood vs. Teton Westwood Small | Teton Westwood vs. The Gabelli Asset | Teton Westwood vs. Teton Westwood Mighty |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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