Correlation Between Gabelli Global and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Old Westbury 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 Old Westbury 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 Old Westbury Municipal, you can compare the effects of market volatilities on Gabelli Global and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Old Westbury.
Diversification Opportunities for Gabelli Global and Old Westbury
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Old is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Gabelli Global i.e., Gabelli Global and Old Westbury go up and down completely randomly.
Pair Corralation between Gabelli Global and Old Westbury
Assuming the 90 days horizon Gabelli Global Financial is expected to under-perform the Old Westbury. In addition to that, Gabelli Global is 6.98 times more volatile than Old Westbury Municipal. It trades about -0.04 of its total potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.58 per unit of volatility. If you would invest 1,149 in Old Westbury Municipal on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Old Westbury Municipal or generate 1.13% 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. Old Westbury Municipal
Performance |
| Timeline |
| Gabelli Global Financial |
| Old Westbury Municipal |
Gabelli Global and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Old Westbury
The main advantage of trading using opposite Gabelli Global and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Gabelli Global vs. Gabelli Esg Fund | Gabelli Global vs. The Gabelli Equity | Gabelli Global vs. Gamco International Growth | Gabelli Global vs. Enterprise Mergers And |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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