Correlation Between The Gabelli and International Fund
Can any of the company-specific risk be diversified away by investing in both The Gabelli and International 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 The Gabelli and International Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Equity and International Fund International, you can compare the effects of market volatilities on The Gabelli and International 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 The Gabelli with a short position of International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and International Fund.
Diversification Opportunities for The Gabelli and International Fund
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THE and International is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and International Fund Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 Equity are associated (or correlated) with International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of The Gabelli i.e., The Gabelli and International Fund go up and down completely randomly.
Pair Corralation between The Gabelli and International Fund
Assuming the 90 days horizon The Gabelli Equity is expected to generate 0.87 times more return on investment than International Fund. However, The Gabelli Equity is 1.15 times less risky than International Fund. It trades about 0.15 of its potential returns per unit of risk. International Fund International is currently generating about -0.03 per unit of risk. If you would invest 607.00 in The Gabelli Equity on September 2, 2024 and sell it today you would earn a total of 42.00 from holding The Gabelli Equity or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Equity vs. International Fund Internation
Performance |
| Timeline |
| Gabelli Equity |
| International Fund |
The Gabelli and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and International Fund
The main advantage of trading using opposite The Gabelli and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, International 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 International Fund will offset losses from the drop in International Fund's long position.| The Gabelli vs. Maryland Tax Free Bond | The Gabelli vs. Ab Global Bond | The Gabelli vs. Oklahoma Municipal Fund | The Gabelli vs. T Rowe Price |
| International Fund vs. Capital Growth Fund | International Fund vs. Emerging Markets Fund | International Fund vs. High Income Fund | International Fund vs. Growth Income 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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