Correlation Between The Gabelli and Washington Mutual
Can any of the company-specific risk be diversified away by investing in both The Gabelli and Washington Mutual 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 The Gabelli and Washington Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Equity and Washington Mutual Investors, you can compare the effects of market volatilities on The Gabelli and Washington Mutual 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 The Gabelli with a short position of Washington Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and Washington Mutual.
Diversification Opportunities for The Gabelli and Washington Mutual
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Washington is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual and The Gabelli 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 The Gabelli Equity are associated (or correlated) with Washington Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Mutual has no effect on the direction of The Gabelli i.e., The Gabelli and Washington Mutual go up and down completely randomly.
Pair Corralation between The Gabelli and Washington Mutual
Assuming the 90 days horizon The Gabelli Equity is expected to generate 1.18 times more return on investment than Washington Mutual. However, The Gabelli is 1.18 times more volatile than Washington Mutual Investors. It trades about 0.37 of its potential returns per unit of risk. Washington Mutual Investors is currently generating about 0.27 per unit of risk. If you would invest 759.00 in The Gabelli Equity on September 2, 2024 and sell it today you would earn a total of 50.00 from holding The Gabelli Equity or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Equity vs. Washington Mutual Investors
Performance |
| Timeline |
| Gabelli Equity |
| Washington Mutual |
The Gabelli and Washington Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and Washington Mutual
The main advantage of trading using opposite The Gabelli and Washington Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli position performs unexpectedly, Washington Mutual 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 Washington Mutual will offset losses from the drop in Washington Mutual's long position.| The Gabelli vs. Ultra Short Fixed Income | The Gabelli vs. The Short Term | The Gabelli vs. Aqr Sustainable Long Short | The Gabelli vs. Angel Oak Ultrashort |
| Washington Mutual vs. Shelton Funds | Washington Mutual vs. Volumetric Fund Volumetric | Washington Mutual vs. Growth Opportunities Fund | Washington Mutual vs. Qs Growth Fund |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |