Correlation Between The Gabelli and Payden California
Can any of the company-specific risk be diversified away by investing in both The Gabelli and Payden California 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 Payden California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Small and Payden California Municipal, you can compare the effects of market volatilities on The Gabelli and Payden California 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 Payden California. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and Payden California.
Diversification Opportunities for The Gabelli and Payden California
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between The and Payden is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Small and Payden California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden California 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 Small are associated (or correlated) with Payden California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden California has no effect on the direction of The Gabelli i.e., The Gabelli and Payden California go up and down completely randomly.
Pair Corralation between The Gabelli and Payden California
Assuming the 90 days horizon The Gabelli Small is expected to generate 6.44 times more return on investment than Payden California. However, The Gabelli is 6.44 times more volatile than Payden California Municipal. It trades about 0.04 of its potential returns per unit of risk. Payden California Municipal is currently generating about 0.1 per unit of risk. If you would invest 3,886 in The Gabelli Small on September 3, 2024 and sell it today you would earn a total of 829.00 from holding The Gabelli Small or generate 21.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.91% |
| Values | Daily Returns |
The Gabelli Small vs. Payden California Municipal
Performance |
| Timeline |
| Gabelli Small |
| Payden California |
The Gabelli and Payden California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and Payden California
The main advantage of trading using opposite The Gabelli and Payden California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, Payden California 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 Payden California will offset losses from the drop in Payden California's long position.| The Gabelli vs. The Gabelli Asset | The Gabelli vs. The Gabelli Equity | The Gabelli vs. The Gabelli Growth | The Gabelli vs. Parnassus E Equity |
| Payden California vs. Tiaa Cref Smallmid Cap Equity | Payden California vs. Wasatch Small Cap | Payden California vs. Small Cap Stock | Payden California vs. The Gabelli Small |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |