Correlation Between Gabelli Global and Cullen International
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Cullen International 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 Cullen International 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 Cullen International High, you can compare the effects of market volatilities on Gabelli Global and Cullen International 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 Cullen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Cullen International.
Diversification Opportunities for Gabelli Global and Cullen International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Cullen is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Cullen International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen International High 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 Cullen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen International High has no effect on the direction of Gabelli Global i.e., Gabelli Global and Cullen International go up and down completely randomly.
Pair Corralation between Gabelli Global and Cullen International
If you would invest 1,546 in Gabelli Global Financial on October 20, 2024 and sell it today you would earn a total of 52.00 from holding Gabelli Global Financial or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Cullen International High
Performance |
| Timeline |
| Gabelli Global Financial |
| Cullen International High |
Gabelli Global and Cullen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Cullen International
The main advantage of trading using opposite Gabelli Global and Cullen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Cullen International 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 Cullen International will offset losses from the drop in Cullen International's long position.| Gabelli Global vs. Qs Large Cap | Gabelli Global vs. Smead Value Fund | Gabelli Global vs. Fundamental Large Cap | Gabelli Global vs. Fidelity 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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