Correlation Between Gabelli Convertible and CBH
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on Gabelli Convertible and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and CBH.
Diversification Opportunities for Gabelli Convertible and CBH
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and CBH is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and CBH go up and down completely randomly.
Pair Corralation between Gabelli Convertible and CBH
Considering the 90-day investment horizon Gabelli Convertible is expected to generate 92.83 times less return on investment than CBH. But when comparing it to its historical volatility, Gabelli Convertible And is 4.24 times less risky than CBH. It trades about 0.0 of its potential returns per unit of risk. CBH is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 837.00 in CBH on November 2, 2024 and sell it today you would earn a total of 958.00 from holding CBH or generate 114.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.15% |
| Values | Daily Returns |
Gabelli Convertible And vs. CBH
Performance |
| Timeline |
| Gabelli Convertible And |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gabelli Convertible and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and CBH
The main advantage of trading using opposite Gabelli Convertible and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH'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 |
| CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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