Correlation Between Gamco Global and Touchstone International
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Touchstone International 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 Touchstone International 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 Touchstone International Equity, you can compare the effects of market volatilities on Gamco Global and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Touchstone International.
Diversification Opportunities for Gamco Global and Touchstone International
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gamco and Touchstone is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Gamco Global and Touchstone International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Gamco Global i.e., Gamco Global and Touchstone International go up and down completely randomly.
Pair Corralation between Gamco Global and Touchstone International
Assuming the 90 days horizon The Gamco Global is expected to generate 0.9 times more return on investment than Touchstone International. However, The Gamco Global is 1.11 times less risky than Touchstone International. It trades about 0.05 of its potential returns per unit of risk. Touchstone International Equity is currently generating about 0.02 per unit of risk. If you would invest 2,540 in The Gamco Global on September 3, 2024 and sell it today you would earn a total of 136.00 from holding The Gamco Global or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gamco Global vs. Touchstone International Equit
Performance |
| Timeline |
| Gamco Global |
| Touchstone International |
Gamco Global and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Touchstone International
The main advantage of trading using opposite Gamco Global and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Gamco Global vs. Quantex Fund Retail | Gamco Global vs. Infrastructure Fund Retail | Gamco Global vs. Dynamic Growth Fund | Gamco Global vs. Balanced Fund Retail |
| Touchstone International vs. T Rowe Price | Touchstone International vs. Balanced Fund Investor | Touchstone International vs. Eic Value Fund | Touchstone International vs. Artisan Thematic 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 CEOs Directory module to screen CEOs from public companies around the world.
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