Correlation Between Gabelli Dividend and Ellsworth Growth
Can any of the company-specific risk be diversified away by investing in both Gabelli Dividend and Ellsworth Growth 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 Dividend and Ellsworth Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Dividend and Ellsworth Growth and, you can compare the effects of market volatilities on Gabelli Dividend and Ellsworth Growth 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 Dividend with a short position of Ellsworth Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Dividend and Ellsworth Growth.
Diversification Opportunities for Gabelli Dividend and Ellsworth Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Ellsworth is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Dividend and Ellsworth Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Growth and Gabelli Dividend 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 The Gabelli Dividend are associated (or correlated) with Ellsworth Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Growth has no effect on the direction of Gabelli Dividend i.e., Gabelli Dividend and Ellsworth Growth go up and down completely randomly.
Pair Corralation between Gabelli Dividend and Ellsworth Growth
Assuming the 90 days trading horizon Gabelli Dividend is expected to generate 1.42 times less return on investment than Ellsworth Growth. But when comparing it to its historical volatility, The Gabelli Dividend is 1.14 times less risky than Ellsworth Growth. It trades about 0.04 of its potential returns per unit of risk. Ellsworth Growth and is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,017 in Ellsworth Growth and on September 3, 2024 and sell it today you would earn a total of 386.00 from holding Ellsworth Growth and or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Gabelli Dividend vs. Ellsworth Growth and
Performance |
| Timeline |
| Gabelli Dividend |
| Ellsworth Growth |
Gabelli Dividend and Ellsworth Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Dividend and Ellsworth Growth
The main advantage of trading using opposite Gabelli Dividend and Ellsworth Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Dividend position performs unexpectedly, Ellsworth Growth 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 Ellsworth Growth will offset losses from the drop in Ellsworth Growth's long position.| Gabelli Dividend vs. The Gabelli Equity | Gabelli Dividend vs. The Gabelli Equity | Gabelli Dividend vs. The Gabelli Utility | Gabelli Dividend vs. The Gabelli Multimedia |
| Ellsworth Growth vs. Bancroft Fund | Ellsworth Growth vs. GAMCO Natural Resources | Ellsworth Growth vs. The Gabelli Multimedia | Ellsworth Growth vs. GAMCO Global Gold |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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