Correlation Between Gabelli Equity and Utilities Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Utilities Fund 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 Utilities Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Equity and Utilities Fund Class, you can compare the effects of market volatilities on Gabelli Equity and Utilities Fund 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 Utilities Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Utilities Fund.
Diversification Opportunities for Gabelli Equity and Utilities Fund
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Utilities is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and Utilities Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Class 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 The Gabelli Equity are associated (or correlated) with Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Class has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Utilities Fund go up and down completely randomly.
Pair Corralation between Gabelli Equity and Utilities Fund
Assuming the 90 days horizon The Gabelli Equity is expected to generate 0.75 times more return on investment than Utilities Fund. However, The Gabelli Equity is 1.33 times less risky than Utilities Fund. It trades about 0.06 of its potential returns per unit of risk. Utilities Fund Class is currently generating about 0.03 per unit of risk. If you would invest 536.00 in The Gabelli Equity on September 12, 2024 and sell it today you would earn a total of 118.00 from holding The Gabelli Equity or generate 22.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Equity vs. Utilities Fund Class
Performance |
| Timeline |
| Gabelli Equity |
| Utilities Fund Class |
Gabelli Equity and Utilities Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Utilities Fund
The main advantage of trading using opposite Gabelli Equity and Utilities Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Utilities Fund 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 Utilities Fund will offset losses from the drop in Utilities Fund's long position.| Gabelli Equity vs. The Gabelli Small | Gabelli Equity vs. The Gabelli Asset | Gabelli Equity vs. Wasatch Large Cap | Gabelli Equity vs. Tcw Relative Value |
| Utilities Fund vs. Alpine Dynamic Dividend | Utilities Fund vs. The Gabelli Utilities | Utilities Fund vs. The Gabelli Equity | Utilities Fund vs. Hennessy Gas Utility |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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