Correlation Between Gabelli Convertible and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Columbia Seligman 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 Columbia Seligman 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 Columbia Seligman Global, you can compare the effects of market volatilities on Gabelli Convertible and Columbia Seligman 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 Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Columbia Seligman.
Diversification Opportunities for Gabelli Convertible and Columbia Seligman
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gabelli and Columbia is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Columbia Seligman Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman Global 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 Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman Global has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Columbia Seligman go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Columbia Seligman
Considering the 90-day investment horizon Gabelli Convertible is expected to generate 1.0 times less return on investment than Columbia Seligman. But when comparing it to its historical volatility, Gabelli Convertible And is 1.47 times less risky than Columbia Seligman. It trades about 0.06 of its potential returns per unit of risk. Columbia Seligman Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,863 in Columbia Seligman Global on November 8, 2024 and sell it today you would earn a total of 75.00 from holding Columbia Seligman Global or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gabelli Convertible And vs. Columbia Seligman Global
Performance |
| Timeline |
| Gabelli Convertible And |
| Columbia Seligman Global |
Gabelli Convertible and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Columbia Seligman
The main advantage of trading using opposite Gabelli Convertible and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman'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 |
| Columbia Seligman vs. Lord Abbett Diversified | Columbia Seligman vs. Stone Ridge Diversified | Columbia Seligman vs. Guggenheim Diversified Income | Columbia Seligman vs. Diversified Income Fund |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |