Correlation Between The Gabelli and FirstEnergy
Can any of the company-specific risk be diversified away by investing in both The Gabelli and FirstEnergy 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 The Gabelli and FirstEnergy 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 FirstEnergy, you can compare the effects of market volatilities on The Gabelli and FirstEnergy 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 The Gabelli with a short position of FirstEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and FirstEnergy.
Diversification Opportunities for The Gabelli and FirstEnergy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between The and FirstEnergy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and FirstEnergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstEnergy and The Gabelli 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 FirstEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstEnergy has no effect on the direction of The Gabelli i.e., The Gabelli and FirstEnergy go up and down completely randomly.
Pair Corralation between The Gabelli and FirstEnergy
If you would invest 3,864 in FirstEnergy on September 3, 2024 and sell it today you would earn a total of 391.00 from holding FirstEnergy or generate 10.12% 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. FirstEnergy
Performance |
| Timeline |
| Gabelli Utilities |
| FirstEnergy |
The Gabelli and FirstEnergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and FirstEnergy
The main advantage of trading using opposite The Gabelli and FirstEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, FirstEnergy 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 FirstEnergy will offset losses from the drop in FirstEnergy's long position.| The Gabelli vs. Aqr Managed Futures | The Gabelli vs. American Funds Inflation | The Gabelli vs. Ab Bond Inflation | The Gabelli vs. Guidepath Managed Futures |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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