Correlation Between The Gabelli and White Oak
Can any of the company-specific risk be diversified away by investing in both The Gabelli 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 The Gabelli 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 Small and White Oak Select, you can compare the effects of market volatilities on The Gabelli 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 The Gabelli with a short position of White Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and White Oak.
Diversification Opportunities for The Gabelli and White Oak
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and White is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Small 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 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 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 The Gabelli i.e., The Gabelli and White Oak go up and down completely randomly.
Pair Corralation between The Gabelli and White Oak
Assuming the 90 days horizon The Gabelli Small is expected to generate 1.65 times more return on investment than White Oak. However, The Gabelli is 1.65 times more volatile than White Oak Select. It trades about 0.29 of its potential returns per unit of risk. White Oak Select is currently generating about 0.17 per unit of risk. If you would invest 4,323 in The Gabelli Small on September 1, 2024 and sell it today you would earn a total of 369.00 from holding The Gabelli Small or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Small vs. White Oak Select
Performance |
| Timeline |
| Gabelli Small |
| White Oak Select |
The Gabelli and White Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and White Oak
The main advantage of trading using opposite The Gabelli and White Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli 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.| The Gabelli vs. The Gabelli Asset | The Gabelli vs. The Gabelli Equity | The Gabelli vs. The Gabelli Growth | The Gabelli vs. Parnassus E Equity |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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