Correlation Between Gabelli Convertible and Western Asset
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Gabelli Convertible and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Western Asset.
Diversification Opportunities for Gabelli Convertible and Western Asset
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Western is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Western Asset go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Western Asset
Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 3.63 times more return on investment than Western Asset. However, Gabelli Convertible is 3.63 times more volatile than Western Asset Inflation. It trades about 0.11 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.07 per unit of risk. If you would invest 348.00 in Gabelli Convertible And on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Gabelli Convertible And or generate 15.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Gabelli Convertible And vs. Western Asset Inflation
Performance |
| Timeline |
| Gabelli Convertible And |
| Western Asset Inflation |
Gabelli Convertible and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Western Asset
The main advantage of trading using opposite Gabelli Convertible and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Legg Mason Partners | Western Asset vs. Artisan Small Cap | Western Asset vs. Growth Opportunities Fund | Western Asset vs. Small Midcap Dividend Income |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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