Correlation Between Gabelli Global and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Ab Impact 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 Global and Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and Ab Impact Municipal, you can compare the effects of market volatilities on Gabelli Global and Ab Impact 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 Global with a short position of Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Ab Impact.
Diversification Opportunities for Gabelli Global and Ab Impact
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and ABIMX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal and Gabelli Global 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 Gabelli Global Financial are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Gabelli Global i.e., Gabelli Global and Ab Impact go up and down completely randomly.
Pair Corralation between Gabelli Global and Ab Impact
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 3.21 times more return on investment than Ab Impact. However, Gabelli Global is 3.21 times more volatile than Ab Impact Municipal. It trades about 0.12 of its potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.06 per unit of risk. If you would invest 1,520 in Gabelli Global Financial on August 30, 2024 and sell it today you would earn a total of 107.00 from holding Gabelli Global Financial or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Ab Impact Municipal
Performance |
| Timeline |
| Gabelli Global Financial |
| Ab Impact Municipal |
Gabelli Global and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Ab Impact
The main advantage of trading using opposite Gabelli Global and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Gabelli Global vs. The Hartford Small | Gabelli Global vs. Jpmorgan Small Cap | Gabelli Global vs. Baird Smallmid Cap | Gabelli Global vs. Kinetics Small Cap |
| Ab Impact vs. Enhanced Large Pany | Ab Impact vs. Jhancock Disciplined Value | Ab Impact vs. Tax Managed Large Cap | Ab Impact vs. Touchstone Large Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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