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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMCO and Stifel is 0.0. 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
If you would invest 1,820 in GAMCO Investors on August 24, 2024 and sell it today you would earn a total of 0.00 from holding GAMCO Investors or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| 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. Stifel Financial Corp | Stifel Financial vs. Stifel Financial Corp | Stifel Financial vs. Morgan Stanley | Stifel Financial vs. The Charles Schwab |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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