Correlation Between The Gabelli and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both The Gabelli and Teton Westwood 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 Teton Westwood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Small and Teton Westwood Mighty, you can compare the effects of market volatilities on The Gabelli and Teton Westwood 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 Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and Teton Westwood.
Diversification Opportunities for The Gabelli and Teton Westwood
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between The and Teton is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Small and Teton Westwood Mighty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Mighty 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 Small are associated (or correlated) with Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Mighty has no effect on the direction of The Gabelli i.e., The Gabelli and Teton Westwood go up and down completely randomly.
Pair Corralation between The Gabelli and Teton Westwood
Assuming the 90 days horizon The Gabelli Small is expected to generate 0.63 times more return on investment than Teton Westwood. However, The Gabelli Small is 1.59 times less risky than Teton Westwood. It trades about 0.07 of its potential returns per unit of risk. Teton Westwood Mighty is currently generating about 0.0 per unit of risk. If you would invest 3,894 in The Gabelli Small on September 3, 2024 and sell it today you would earn a total of 821.00 from holding The Gabelli Small or generate 21.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Small vs. Teton Westwood Mighty
Performance |
| Timeline |
| Gabelli Small |
| Teton Westwood Mighty |
The Gabelli and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and Teton Westwood
The main advantage of trading using opposite The Gabelli and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood's long position.| The Gabelli vs. Vanguard Small Cap Index | The Gabelli vs. Vanguard Small Cap Index | The Gabelli vs. Vanguard Small Cap Index | The Gabelli vs. Vanguard Small Cap Index |
| Teton Westwood vs. Teton Westwood Mighty | Teton Westwood vs. First Eagle Overseas | Teton Westwood vs. Teton Westwood Mighty | Teton Westwood vs. Oppenheimer Developing Markets |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |