Correlation Between The Gabelli and Gamco International
Can any of the company-specific risk be diversified away by investing in both The Gabelli 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 The Gabelli and Gamco International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Growth and Gamco International Growth, you can compare the effects of market volatilities on The Gabelli 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 The Gabelli with a short position of Gamco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Gabelli and Gamco International.
Diversification Opportunities for The Gabelli and Gamco International
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between The and Gamco is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Growth and Gamco International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco International and The Gabelli 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 Growth 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 The Gabelli i.e., The Gabelli and Gamco International go up and down completely randomly.
Pair Corralation between The Gabelli and Gamco International
Assuming the 90 days horizon The Gabelli Growth is expected to generate 1.26 times more return on investment than Gamco International. However, The Gabelli is 1.26 times more volatile than Gamco International Growth. It trades about 0.11 of its potential returns per unit of risk. Gamco International Growth is currently generating about 0.0 per unit of risk. If you would invest 6,745 in The Gabelli Growth on September 1, 2024 and sell it today you would earn a total of 5,079 from holding The Gabelli Growth or generate 75.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
The Gabelli Growth vs. Gamco International Growth
Performance |
| Timeline |
| Gabelli Growth |
| Gamco International |
The Gabelli and Gamco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Gabelli and Gamco International
The main advantage of trading using opposite The Gabelli and Gamco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Gabelli 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.| The Gabelli vs. Mesirow Financial Small | The Gabelli vs. 1919 Financial Services | The Gabelli vs. Royce Global Financial | The Gabelli vs. Prudential Jennison Financial |
| Gamco International vs. Federated Ohio Municipal | Gamco International vs. Calamos Short Term Bond | Gamco International vs. Bbh Intermediate Municipal | Gamco International vs. Oklahoma Municipal Fund |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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