Correlation Between Gamco Global and General Money
Can any of the company-specific risk be diversified away by investing in both Gamco Global and General Money 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 General Money 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 General Money Market, you can compare the effects of market volatilities on Gamco Global and General Money 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 General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and General Money.
Diversification Opportunities for Gamco Global and General Money
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gamco and General is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Telecommunication and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market 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 General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Gamco Global i.e., Gamco Global and General Money go up and down completely randomly.
Pair Corralation between Gamco Global and General Money
If you would invest 100.00 in General Money Market on August 28, 2024 and sell it today you would earn a total of 0.00 from holding General Money Market or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Telecommunication vs. General Money Market
Performance |
| Timeline |
| Gamco Global Telecom |
| General Money Market |
Gamco Global and General Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and General Money
The main advantage of trading using opposite Gamco Global and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.| Gamco Global vs. Pace High Yield | Gamco Global vs. Artisan High Income | Gamco Global vs. Pioneer High Yield | Gamco Global vs. Guggenheim High Yield |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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