Correlation Between Gabelli Global and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Gabelli Global and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Angel Oak.
Diversification Opportunities for Gabelli Global and Angel Oak
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Angel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Gabelli Global i.e., Gabelli Global and Angel Oak go up and down completely randomly.
Pair Corralation between Gabelli Global and Angel Oak
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 3.99 times more return on investment than Angel Oak. However, Gabelli Global is 3.99 times more volatile than Angel Oak Financial. It trades about 0.11 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.05 per unit of risk. If you would invest 1,005 in Gabelli Global Financial on August 27, 2024 and sell it today you would earn a total of 641.00 from holding Gabelli Global Financial or generate 63.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Angel Oak Financial
Performance |
| Timeline |
| Gabelli Global Financial |
| Angel Oak Financial |
Gabelli Global and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Angel Oak
The main advantage of trading using opposite Gabelli Global and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak'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 |
| Angel Oak vs. Commonwealth Global Fund | Angel Oak vs. Us Global Investors | Angel Oak vs. Vanguard Global Credit | Angel Oak vs. Dodge Global Stock |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |