Correlation Between Gabelli Global and Mainstay New
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Mainstay New 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 Mainstay New 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 Mainstay New York, you can compare the effects of market volatilities on Gabelli Global and Mainstay New 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 Mainstay New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Mainstay New.
Diversification Opportunities for Gabelli Global and Mainstay New
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Mainstay is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Mainstay New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay New York 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 Mainstay New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay New York has no effect on the direction of Gabelli Global i.e., Gabelli Global and Mainstay New go up and down completely randomly.
Pair Corralation between Gabelli Global and Mainstay New
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 3.1 times more return on investment than Mainstay New. However, Gabelli Global is 3.1 times more volatile than Mainstay New York. It trades about 0.18 of its potential returns per unit of risk. Mainstay New York is currently generating about 0.04 per unit of risk. If you would invest 1,465 in Gabelli Global Financial on September 12, 2024 and sell it today you would earn a total of 151.00 from holding Gabelli Global Financial or generate 10.31% 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. Mainstay New York
Performance |
| Timeline |
| Gabelli Global Financial |
| Mainstay New York |
Gabelli Global and Mainstay New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Mainstay New
The main advantage of trading using opposite Gabelli Global and Mainstay New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Mainstay New 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 Mainstay New will offset losses from the drop in Mainstay New's long position.| Gabelli Global vs. Heartland Value Plus | Gabelli Global vs. Mutual Of America | Gabelli Global vs. Ab Discovery Value | Gabelli Global vs. Boston Partners Small |
| Mainstay New vs. Prudential High Yield | Mainstay New vs. Fidelity Capital Income | Mainstay New vs. Buffalo High Yield | Mainstay New vs. City National Rochdale |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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