Correlation Between GAMCO Global and AKITA Drilling
Can any of the company-specific risk be diversified away by investing in both GAMCO Global and AKITA Drilling 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 GAMCO Global and AKITA Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Global Gold and AKITA Drilling, you can compare the effects of market volatilities on GAMCO Global and AKITA Drilling 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 GAMCO Global with a short position of AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and AKITA Drilling.
Diversification Opportunities for GAMCO Global and AKITA Drilling
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMCO and AKITA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling and GAMCO 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 GAMCO Global Gold are associated (or correlated) with AKITA Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKITA Drilling has no effect on the direction of GAMCO Global i.e., GAMCO Global and AKITA Drilling go up and down completely randomly.
Pair Corralation between GAMCO Global and AKITA Drilling
Assuming the 90 days trading horizon GAMCO Global Gold is expected to under-perform the AKITA Drilling. But the preferred stock apears to be less risky and, when comparing its historical volatility, GAMCO Global Gold is 1.46 times less risky than AKITA Drilling. The preferred stock trades about -0.09 of its potential returns per unit of risk. The AKITA Drilling is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 116.00 in AKITA Drilling on September 13, 2024 and sell it today you would earn a total of 0.00 from holding AKITA Drilling or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GAMCO Global Gold vs. AKITA Drilling
Performance |
| Timeline |
| GAMCO Global Gold |
| AKITA Drilling |
GAMCO Global and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and AKITA Drilling
The main advantage of trading using opposite GAMCO Global and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, AKITA Drilling 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 AKITA Drilling will offset losses from the drop in AKITA Drilling's long position.| GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. General American Investors | GAMCO Global vs. The Gabelli Utility |
| AKITA Drilling vs. Cathedral Energy Services | AKITA Drilling vs. Vantage Drilling International | AKITA Drilling vs. Seadrill Limited | AKITA Drilling vs. Noble plc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |