Correlation Between Gabelli Equity and Gamco International
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity and Gamco International 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 Equity and Gamco International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Equity Income and Gamco International Growth, you can compare the effects of market volatilities on Gabelli Equity and Gamco International 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 Equity with a short position of Gamco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Gamco International.
Diversification Opportunities for Gabelli Equity and Gamco International
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Gamco is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Income and Gamco International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco International and Gabelli Equity 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 Equity Income are associated (or correlated) with Gamco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco International has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Gamco International go up and down completely randomly.
Pair Corralation between Gabelli Equity and Gamco International
Assuming the 90 days horizon Gabelli Equity Income is expected to generate 0.82 times more return on investment than Gamco International. However, Gabelli Equity Income is 1.21 times less risky than Gamco International. It trades about 0.1 of its potential returns per unit of risk. Gamco International Growth is currently generating about -0.23 per unit of risk. If you would invest 771.00 in Gabelli Equity Income on August 25, 2024 and sell it today you would earn a total of 26.00 from holding Gabelli Equity Income or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Equity Income vs. Gamco International Growth
Performance |
| Timeline |
| Gabelli Equity Income |
| Gamco International |
Gabelli Equity and Gamco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Gamco International
The main advantage of trading using opposite Gabelli Equity and Gamco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity position performs unexpectedly, Gamco International 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 Gamco International will offset losses from the drop in Gamco International's long position.| Gabelli Equity vs. Dunham Real Estate | Gabelli Equity vs. Deutsche Real Estate | Gabelli Equity vs. Prudential Real Estate | Gabelli Equity vs. Amg Managers Centersquare |
| Gamco International vs. Artisan High Income | Gamco International vs. Pace High Yield | Gamco International vs. Virtus High Yield | Gamco International vs. Prudential High Yield |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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