Correlation Between Gamco Global and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Gamco Global 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 Gamco Global and Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Opportunity and Teton Westwood Mighty, you can compare the effects of market volatilities on Gamco Global 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 Gamco Global with a short position of Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Teton Westwood.
Diversification Opportunities for Gamco Global and Teton Westwood
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamco and Teton is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Opportunity 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 Gamco Global 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 Gamco Global Opportunity 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 Gamco Global i.e., Gamco Global and Teton Westwood go up and down completely randomly.
Pair Corralation between Gamco Global and Teton Westwood
Assuming the 90 days horizon Gamco Global Opportunity is expected to under-perform the Teton Westwood. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gamco Global Opportunity is 2.08 times less risky than Teton Westwood. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Teton Westwood Mighty is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,582 in Teton Westwood Mighty on August 29, 2024 and sell it today you would earn a total of 92.00 from holding Teton Westwood Mighty or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Opportunity vs. Teton Westwood Mighty
Performance |
| Timeline |
| Gamco Global Opportunity |
| Teton Westwood Mighty |
Gamco Global and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Teton Westwood
The main advantage of trading using opposite Gamco Global and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global 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.| Gamco Global vs. Oppenheimer Intl Small | Gamco Global vs. Oppenheimer Intl Small | Gamco Global vs. Oppenheimer Intl Small | Gamco Global vs. T Rowe Price |
| Teton Westwood vs. Vanguard Small Cap Index | Teton Westwood vs. T Rowe Price | Teton Westwood vs. HUMANA INC | Teton Westwood vs. Aquagold International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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