Correlation Between Gamco Global and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Stringer Growth 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 Stringer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gamco Global and Stringer Growth Fund, you can compare the effects of market volatilities on Gamco Global and Stringer Growth 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 Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Stringer Growth.
Diversification Opportunities for Gamco Global and Stringer Growth
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gamco and STRINGER is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Gamco Global and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth 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 The Gamco Global are associated (or correlated) with Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Gamco Global i.e., Gamco Global and Stringer Growth go up and down completely randomly.
Pair Corralation between Gamco Global and Stringer Growth
Assuming the 90 days horizon Gamco Global is expected to generate 1.46 times less return on investment than Stringer Growth. In addition to that, Gamco Global is 1.36 times more volatile than Stringer Growth Fund. It trades about 0.03 of its total potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.06 per unit of volatility. If you would invest 1,083 in Stringer Growth Fund on September 2, 2024 and sell it today you would earn a total of 201.00 from holding Stringer Growth Fund or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gamco Global vs. Stringer Growth Fund
Performance |
| Timeline |
| Gamco Global |
| Stringer Growth |
Gamco Global and Stringer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Stringer Growth
The main advantage of trading using opposite Gamco Global and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.| Gamco Global vs. Transamerica Funds | Gamco Global vs. Aig Government Money | Gamco Global vs. Meeder Funds | Gamco Global vs. Chestnut Street Exchange |
| Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Pimco Income Strategy | Stringer Growth vs. Vanguard 500 Index |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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