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 Equity and Teton Westwood Mighty, 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
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Teton is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and Teton Westwood Mighty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Mighty 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 Equity 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 Mighty 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 Equity is expected to generate 0.43 times more return on investment than Teton Westwood. However, The Gabelli Equity is 2.34 times less risky than Teton Westwood. It trades about 0.06 of its potential returns per unit of risk. Teton Westwood Mighty is currently generating about -0.02 per unit of risk. If you would invest 554.00 in The Gabelli Equity on September 11, 2024 and sell it today you would earn a total of 102.00 from holding The Gabelli Equity or generate 18.41% 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 Equity vs. Teton Westwood Mighty
Performance |
| Timeline |
| Gabelli Equity |
| Teton Westwood Mighty |
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. The Gabelli Small | The Gabelli vs. The Gabelli Asset | The Gabelli vs. Wasatch Large Cap | The Gabelli vs. Tcw Relative Value |
| Teton Westwood vs. Teton Westwood Mighty | Teton Westwood vs. First Eagle Overseas | Teton Westwood vs. Teton Westwood Mighty | Teton Westwood vs. Oppenheimer Developing Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |