Correlation Between Western Asset and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Western Asset and Gabelli Global 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 Western Asset and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Global and Gabelli Global Small, you can compare the effects of market volatilities on Western Asset and Gabelli Global 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 Western Asset with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Gabelli Global.
Diversification Opportunities for Western Asset and Gabelli Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Western and Gabelli is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Global and Gabelli Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Small and Western Asset 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 Western Asset Global are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Small has no effect on the direction of Western Asset i.e., Western Asset and Gabelli Global go up and down completely randomly.
Pair Corralation between Western Asset and Gabelli Global
Considering the 90-day investment horizon Western Asset is expected to generate 1.86 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Western Asset Global is 1.82 times less risky than Gabelli Global. It trades about 0.02 of its potential returns per unit of risk. Gabelli Global Small is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,138 in Gabelli Global Small on November 2, 2024 and sell it today you would earn a total of 104.35 from holding Gabelli Global Small or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Global vs. Gabelli Global Small
Performance |
| Timeline |
| Western Asset Global |
| Gabelli Global Small |
Western Asset and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Gabelli Global
The main advantage of trading using opposite Western Asset and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Western Asset vs. Western Asset High | Western Asset vs. Western Asset Global | Western Asset vs. European Equity Closed | Western Asset vs. Doubleline Opportunistic Credit |
| Gabelli Global vs. MFS Investment Grade | Gabelli Global vs. Eaton Vance National | Gabelli Global vs. Nuveen California Select | Gabelli Global vs. Federated Premier Municipal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |