Correlation Between Gabelli Convertible and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Ab Municipal 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 Convertible and Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Convertible And and Ab Municipal Bond, you can compare the effects of market volatilities on Gabelli Convertible and Ab Municipal 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 Convertible with a short position of Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Ab Municipal.
Diversification Opportunities for Gabelli Convertible and Ab Municipal
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and AUNTX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond and Gabelli Convertible 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 Convertible And are associated (or correlated) with Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Ab Municipal go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Ab Municipal
Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 6.62 times more return on investment than Ab Municipal. However, Gabelli Convertible is 6.62 times more volatile than Ab Municipal Bond. It trades about 0.03 of its potential returns per unit of risk. Ab Municipal Bond is currently generating about 0.1 per unit of risk. If you would invest 369.00 in Gabelli Convertible And on August 31, 2024 and sell it today you would earn a total of 34.00 from holding Gabelli Convertible And or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Gabelli Convertible And vs. Ab Municipal Bond
Performance |
| Timeline |
| Gabelli Convertible And |
| Ab Municipal Bond |
Gabelli Convertible and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Ab Municipal
The main advantage of trading using opposite Gabelli Convertible and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
| Ab Municipal vs. Qs Small Capitalization | Ab Municipal vs. T Rowe Price | Ab Municipal vs. Chartwell Small Cap | Ab Municipal vs. Small Pany Growth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |