Correlation Between Gabelli Convertible and Franklin Utilities
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Franklin Utilities 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 Franklin Utilities 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 Franklin Utilities Fund, you can compare the effects of market volatilities on Gabelli Convertible and Franklin Utilities 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 Franklin Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Franklin Utilities.
Diversification Opportunities for Gabelli Convertible and Franklin Utilities
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabelli and Franklin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Franklin Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Utilities 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 Franklin Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Utilities has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Franklin Utilities go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Franklin Utilities
Considering the 90-day investment horizon Gabelli Convertible is expected to generate 1.0 times less return on investment than Franklin Utilities. In addition to that, Gabelli Convertible is 1.1 times more volatile than Franklin Utilities Fund. It trades about 0.09 of its total potential returns per unit of risk. Franklin Utilities Fund is currently generating about 0.1 per unit of volatility. If you would invest 1,988 in Franklin Utilities Fund on September 14, 2024 and sell it today you would earn a total of 485.00 from holding Franklin Utilities Fund or generate 24.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Convertible And vs. Franklin Utilities Fund
Performance |
| Timeline |
| Gabelli Convertible And |
| Franklin Utilities |
Gabelli Convertible and Franklin Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Franklin Utilities
The main advantage of trading using opposite Gabelli Convertible and Franklin Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Franklin Utilities 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 Franklin Utilities will offset losses from the drop in Franklin Utilities' 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 |
| Franklin Utilities vs. Siit Small Mid | Franklin Utilities vs. Cardinal Small Cap | Franklin Utilities vs. Small Pany Growth | Franklin Utilities vs. Vy Columbia Small |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |