Correlation Between Gamco Global and Astor Star
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Astor Star 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 Astor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Telecommunications and Astor Star Fund, you can compare the effects of market volatilities on Gamco Global and Astor Star 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 Astor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Astor Star.
Diversification Opportunities for Gamco Global and Astor Star
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Astor is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Telecommunication and Astor Star Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Star Fund 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 Telecommunications are associated (or correlated) with Astor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Star Fund has no effect on the direction of Gamco Global i.e., Gamco Global and Astor Star go up and down completely randomly.
Pair Corralation between Gamco Global and Astor Star
Assuming the 90 days horizon Gamco Global is expected to generate 1.22 times less return on investment than Astor Star. In addition to that, Gamco Global is 1.19 times more volatile than Astor Star Fund. It trades about 0.19 of its total potential returns per unit of risk. Astor Star Fund is currently generating about 0.28 per unit of volatility. If you would invest 1,341 in Astor Star Fund on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Astor Star Fund or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Gamco Global Telecommunication vs. Astor Star Fund
Performance |
| Timeline |
| Gamco Global Telecom |
| Astor Star Fund |
Gamco Global and Astor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Astor Star
The main advantage of trading using opposite Gamco Global and Astor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Astor Star 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 Astor Star will offset losses from the drop in Astor Star's long position.| Gamco Global vs. Fidelity Small Cap | Gamco Global vs. Victory Rs Partners | Gamco Global vs. Lsv Small Cap | Gamco Global vs. Mutual Of America |
| Astor Star vs. Astor Star Fund | Astor Star vs. Astor Star Fund | Astor Star vs. Astor Longshort Fund | Astor Star vs. Astor Longshort Fund |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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