Correlation Between Gabelli Asset and White Oak
Can any of the company-specific risk be diversified away by investing in both Gabelli Asset and White Oak 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 Asset and White Oak 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 White Oak Select, you can compare the effects of market volatilities on Gabelli Asset and White Oak 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 Asset with a short position of White Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Asset and White Oak.
Diversification Opportunities for Gabelli Asset and White Oak
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and White is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Asset and White Oak Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Oak Select and Gabelli Asset 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 White Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Oak Select has no effect on the direction of Gabelli Asset i.e., Gabelli Asset and White Oak go up and down completely randomly.
Pair Corralation between Gabelli Asset and White Oak
Assuming the 90 days horizon The Gabelli Asset is expected to under-perform the White Oak. In addition to that, Gabelli Asset is 1.0 times more volatile than White Oak Select. It trades about -0.01 of its total potential returns per unit of risk. White Oak Select is currently generating about 0.04 per unit of volatility. If you would invest 13,344 in White Oak Select on November 3, 2024 and sell it today you would earn a total of 1,367 from holding White Oak Select or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Asset vs. White Oak Select
Performance |
| Timeline |
| Gabelli Asset |
| White Oak Select |
Gabelli Asset and White Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Asset and White Oak
The main advantage of trading using opposite Gabelli Asset and White Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Asset position performs unexpectedly, White Oak 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 White Oak will offset losses from the drop in White Oak's long position.| Gabelli Asset vs. Nasdaq 100 Fund Investor | Gabelli Asset vs. Meridian Growth Fund | Gabelli Asset vs. The Gabelli Small | Gabelli Asset vs. The Gabelli Growth |
| White Oak vs. Red Oak Technology | White Oak vs. Pin Oak Equity | White Oak vs. Black Oak Emerging | White Oak vs. Clearbridge Value Trust |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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