Correlation Between Gabelli Convertible and Washington Mutual
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible 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 Gabelli Convertible and Washington Mutual 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 Washington Mutual Investors, you can compare the effects of market volatilities on Gabelli Convertible 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 Gabelli Convertible with a short position of Washington Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Washington Mutual.
Diversification Opportunities for Gabelli Convertible and Washington Mutual
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Washington is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual 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 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 Gabelli Convertible i.e., Gabelli Convertible and Washington Mutual go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Washington Mutual
Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 1.33 times more return on investment than Washington Mutual. However, Gabelli Convertible is 1.33 times more volatile than Washington Mutual Investors. It trades about 0.34 of its potential returns per unit of risk. Washington Mutual Investors is currently generating about 0.14 per unit of risk. If you would invest 370.00 in Gabelli Convertible And on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Gabelli Convertible And or generate 7.57% 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. Washington Mutual Investors
Performance |
| Timeline |
| Gabelli Convertible And |
| Washington Mutual |
Gabelli Convertible and Washington Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Washington Mutual
The main advantage of trading using opposite Gabelli Convertible and Washington Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible 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.| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
| Washington Mutual vs. Lord Abbett Convertible | Washington Mutual vs. Gabelli Convertible And | Washington Mutual vs. Putnam Convertible Incm Gwth | Washington Mutual vs. Virtus 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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