Correlation Between Gdl Closed and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Gdl Closed and Ameritrans Capital 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 Gdl Closed and Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gdl Closed Fund and Ameritrans Capital Corp, you can compare the effects of market volatilities on Gdl Closed and Ameritrans Capital 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 Gdl Closed with a short position of Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gdl Closed and Ameritrans Capital.
Diversification Opportunities for Gdl Closed and Ameritrans Capital
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gdl and Ameritrans is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gdl Closed Fund and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp and Gdl Closed 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 Gdl Closed Fund are associated (or correlated) with Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Gdl Closed i.e., Gdl Closed and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Gdl Closed and Ameritrans Capital
If you would invest 804.00 in Gdl Closed Fund on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Gdl Closed Fund or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gdl Closed Fund vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Gdl Closed Fund |
| Ameritrans Capital Corp |
Gdl Closed and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gdl Closed and Ameritrans Capital
The main advantage of trading using opposite Gdl Closed and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gdl Closed position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Gdl Closed vs. MFS Investment Grade | Gdl Closed vs. Eaton Vance National | Gdl Closed vs. Federated Premier Municipal | Gdl Closed vs. Ellsworth Convertible Growth |
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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.
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