Correlation Between Gabelli Global and Comstock Capital
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Comstock 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 Gabelli Global and Comstock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Financial and Comstock Capital Value, you can compare the effects of market volatilities on Gabelli Global and Comstock 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 Gabelli Global with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Comstock Capital.
Diversification Opportunities for Gabelli Global and Comstock Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Comstock is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Gabelli Global 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 Global Financial are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Gabelli Global i.e., Gabelli Global and Comstock Capital go up and down completely randomly.
Pair Corralation between Gabelli Global and Comstock Capital
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 3.37 times more return on investment than Comstock Capital. However, Gabelli Global is 3.37 times more volatile than Comstock Capital Value. It trades about 0.11 of its potential returns per unit of risk. Comstock Capital Value is currently generating about 0.08 per unit of risk. If you would invest 1,003 in Gabelli Global Financial on August 26, 2024 and sell it today you would earn a total of 663.00 from holding Gabelli Global Financial or generate 66.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Comstock Capital Value
Performance |
| Timeline |
| Gabelli Global Financial |
| Comstock Capital Value |
Gabelli Global and Comstock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Comstock Capital
The main advantage of trading using opposite Gabelli Global and Comstock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Comstock 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 Comstock Capital will offset losses from the drop in Comstock Capital's long position.| Gabelli Global vs. T Rowe Price | Gabelli Global vs. Ashmore Emerging Markets | Gabelli Global vs. Institutional Fiduciary Trust | Gabelli Global vs. Blackrock Funds Iii |
| Comstock Capital vs. Gabelli Esg Fund | Comstock Capital vs. Gabelli Global Financial | Comstock Capital vs. The Gabelli Equity | Comstock Capital vs. Gamco International Growth |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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