Correlation Between Gabelli Money and High Yield
Can any of the company-specific risk be diversified away by investing in both Gabelli Money and High Yield 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 Gabelli Money and High Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Money and High Yield Municipal Fund, you can compare the effects of market volatilities on Gabelli Money and High Yield 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 Gabelli Money with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Money and High Yield.
Diversification Opportunities for Gabelli Money and High Yield
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and High is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Money and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Gabelli Money 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 Money are associated (or correlated) with High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Gabelli Money i.e., Gabelli Money and High Yield go up and down completely randomly.
Pair Corralation between Gabelli Money and High Yield
Assuming the 90 days horizon The Gabelli Money is expected to generate 64.67 times more return on investment than High Yield. However, Gabelli Money is 64.67 times more volatile than High Yield Municipal Fund. It trades about 0.04 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.07 per unit of risk. If you would invest 89.00 in The Gabelli Money on September 14, 2024 and sell it today you would earn a total of 11.00 from holding The Gabelli Money or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
The Gabelli Money vs. High Yield Municipal Fund
Performance |
| Timeline |
| Gabelli Money |
| High Yield Municipal |
Gabelli Money and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Money and High Yield
The main advantage of trading using opposite Gabelli Money and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Money position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Gabelli Money vs. Artisan High Income | Gabelli Money vs. Touchstone Premium Yield | Gabelli Money vs. Alliancebernstein Bond | Gabelli Money vs. California Bond Fund |
| High Yield vs. John Hancock Money | High Yield vs. The Gabelli Money | High Yield vs. Blackrock Exchange Portfolio | High Yield vs. Matson Money Equity |
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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