Correlation Between GAMCO Global and Ross Stores
Can any of the company-specific risk be diversified away by investing in both GAMCO Global and Ross Stores 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 Ross Stores 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 Ross Stores, you can compare the effects of market volatilities on GAMCO Global and Ross Stores 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 Ross Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Ross Stores.
Diversification Opportunities for GAMCO Global and Ross Stores
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMCO and Ross is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and Ross Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ross Stores 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 Ross Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ross Stores has no effect on the direction of GAMCO Global i.e., GAMCO Global and Ross Stores go up and down completely randomly.
Pair Corralation between GAMCO Global and Ross Stores
Assuming the 90 days trading horizon GAMCO Global Gold is expected to generate 0.37 times more return on investment than Ross Stores. However, GAMCO Global Gold is 2.7 times less risky than Ross Stores. It trades about 0.02 of its potential returns per unit of risk. Ross Stores is currently generating about -0.08 per unit of risk. If you would invest 2,062 in GAMCO Global Gold on January 8, 2025 and sell it today you would earn a total of 4.00 from holding GAMCO Global Gold or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Global Gold vs. Ross Stores
Performance |
| Timeline |
| GAMCO Global Gold |
| Ross Stores |
GAMCO Global and Ross Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and Ross Stores
The main advantage of trading using opposite GAMCO Global and Ross Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, Ross Stores 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 Ross Stores will offset losses from the drop in Ross Stores' 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 |
| Ross Stores vs. Burlington Stores | Ross Stores vs. American Eagle Outfitters | Ross Stores vs. Lululemon Athletica | Ross Stores vs. Foot Locker |
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 CEOs Directory module to screen CEOs from public companies around the world.
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