Correlation Between Gabelli Utilities and Utilities Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Utilities and Utilities Fund 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 Utilities and Utilities Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Utilities and Utilities Fund Investor, you can compare the effects of market volatilities on Gabelli Utilities and Utilities Fund 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 Utilities with a short position of Utilities Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utilities and Utilities Fund.
Diversification Opportunities for Gabelli Utilities and Utilities Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gabelli and Utilities is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and Utilities Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Fund Investor and Gabelli Utilities 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 Utilities are associated (or correlated) with Utilities Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Fund Investor has no effect on the direction of Gabelli Utilities i.e., Gabelli Utilities and Utilities Fund go up and down completely randomly.
Pair Corralation between Gabelli Utilities and Utilities Fund
Assuming the 90 days horizon The Gabelli Utilities is expected to under-perform the Utilities Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Gabelli Utilities is 1.24 times less risky than Utilities Fund. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Utilities Fund Investor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,550 in Utilities Fund Investor on September 13, 2024 and sell it today you would earn a total of 262.00 from holding Utilities Fund Investor or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Utilities vs. Utilities Fund Investor
Performance |
| Timeline |
| Gabelli Utilities |
| Utilities Fund Investor |
Gabelli Utilities and Utilities Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Utilities and Utilities Fund
The main advantage of trading using opposite Gabelli Utilities and Utilities Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utilities position performs unexpectedly, Utilities Fund 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 Utilities Fund will offset losses from the drop in Utilities Fund's long position.| Gabelli Utilities vs. Dominion Energy | Gabelli Utilities vs. Atlantica Sustainable Infrastructure | Gabelli Utilities vs. Consolidated Edison | Gabelli Utilities vs. Eversource Energy |
| Utilities Fund vs. Real Estate Fund | Utilities Fund vs. Emerging Markets Fund | Utilities Fund vs. Heritage Fund Investor | Utilities Fund vs. Global Gold 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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