Correlation Between GAMCO Investors and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both GAMCO Investors and Stifel Financial 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 Investors and Stifel Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Investors and Stifel Financial Corp, you can compare the effects of market volatilities on GAMCO Investors and Stifel Financial 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 Investors with a short position of Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Investors and Stifel Financial.
Diversification Opportunities for GAMCO Investors and Stifel Financial
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMCO and Stifel is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Investors and Stifel Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial Corp and GAMCO Investors 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 Investors are associated (or correlated) with Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial Corp has no effect on the direction of GAMCO Investors i.e., GAMCO Investors and Stifel Financial go up and down completely randomly.
Pair Corralation between GAMCO Investors and Stifel Financial
Given the investment horizon of 90 days GAMCO Investors is expected to generate 2.16 times more return on investment than Stifel Financial. However, GAMCO Investors is 2.16 times more volatile than Stifel Financial Corp. It trades about 0.15 of its potential returns per unit of risk. Stifel Financial Corp is currently generating about 0.03 per unit of risk. If you would invest 1,556 in GAMCO Investors on August 27, 2024 and sell it today you would earn a total of 264.00 from holding GAMCO Investors or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.87% |
| Values | Daily Returns |
GAMCO Investors vs. Stifel Financial Corp
Performance |
| Timeline |
| GAMCO Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stifel Financial Corp |
GAMCO Investors and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Investors and Stifel Financial
The main advantage of trading using opposite GAMCO Investors and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Investors position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.| GAMCO Investors vs. Gabelli Global Small | GAMCO Investors vs. Gabelli Convertible And | GAMCO Investors vs. MFS Investment Grade | GAMCO Investors vs. Eaton Vance National |
| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. The Charles Schwab | Stifel Financial vs. Jefferies Financial Group | Stifel Financial vs. Oppenheimer Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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