Correlation Between Gabelli Convertible and Dunham Monthly
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Dunham Monthly 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 Dunham Monthly 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 Dunham Monthly Distribution, you can compare the effects of market volatilities on Gabelli Convertible and Dunham Monthly 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 Dunham Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Dunham Monthly.
Diversification Opportunities for Gabelli Convertible and Dunham Monthly
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Dunham is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Dunham Monthly Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Monthly Distr 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 Dunham Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Monthly Distr has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Dunham Monthly go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Dunham Monthly
Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 2.7 times more return on investment than Dunham Monthly. However, Gabelli Convertible is 2.7 times more volatile than Dunham Monthly Distribution. It trades about 0.44 of its potential returns per unit of risk. Dunham Monthly Distribution is currently generating about 0.03 per unit of risk. If you would invest 371.00 in Gabelli Convertible And on September 2, 2024 and sell it today you would earn a total of 32.00 from holding Gabelli Convertible And or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Convertible And vs. Dunham Monthly Distribution
Performance |
| Timeline |
| Gabelli Convertible And |
| Dunham Monthly Distr |
Gabelli Convertible and Dunham Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Dunham Monthly
The main advantage of trading using opposite Gabelli Convertible and Dunham Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Dunham Monthly 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 Dunham Monthly will offset losses from the drop in Dunham Monthly'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 |
| Dunham Monthly vs. Calamos Dynamic Convertible | Dunham Monthly vs. Gabelli Convertible And | Dunham Monthly vs. Virtus Convertible | Dunham Monthly vs. Lord Abbett Convertible |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |