Correlation Between GAMCO Global and Deluxe
Can any of the company-specific risk be diversified away by investing in both GAMCO Global and Deluxe 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 Deluxe 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 Deluxe, you can compare the effects of market volatilities on GAMCO Global and Deluxe 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 Deluxe. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Deluxe.
Diversification Opportunities for GAMCO Global and Deluxe
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMCO and Deluxe is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and Deluxe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deluxe 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 Deluxe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deluxe has no effect on the direction of GAMCO Global i.e., GAMCO Global and Deluxe go up and down completely randomly.
Pair Corralation between GAMCO Global and Deluxe
Assuming the 90 days trading horizon GAMCO Global Gold is expected to under-perform the Deluxe. But the preferred stock apears to be less risky and, when comparing its historical volatility, GAMCO Global Gold is 6.16 times less risky than Deluxe. The preferred stock trades about -0.01 of its potential returns per unit of risk. The Deluxe is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,852 in Deluxe on September 1, 2024 and sell it today you would earn a total of 465.00 from holding Deluxe or generate 25.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Global Gold vs. Deluxe
Performance |
| Timeline |
| GAMCO Global Gold |
| Deluxe |
GAMCO Global and Deluxe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and Deluxe
The main advantage of trading using opposite GAMCO Global and Deluxe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, Deluxe 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 Deluxe will offset losses from the drop in Deluxe'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 |
| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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