Correlation Between GAMCO Global and Stingray
Can any of the company-specific risk be diversified away by investing in both GAMCO Global and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on GAMCO Global and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Stingray.
Diversification Opportunities for GAMCO Global and Stingray
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GAMCO and Stingray is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of GAMCO Global i.e., GAMCO Global and Stingray go up and down completely randomly.
Pair Corralation between GAMCO Global and Stingray
Assuming the 90 days trading horizon GAMCO Global Gold is expected to generate 0.84 times more return on investment than Stingray. However, GAMCO Global Gold is 1.19 times less risky than Stingray. It trades about 0.26 of its potential returns per unit of risk. Stingray Group is currently generating about -0.09 per unit of risk. If you would invest 2,039 in GAMCO Global Gold on October 22, 2024 and sell it today you would earn a total of 75.00 from holding GAMCO Global Gold or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
GAMCO Global Gold vs. Stingray Group
Performance |
| Timeline |
| GAMCO Global Gold |
| Stingray Group |
GAMCO Global and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and Stingray
The main advantage of trading using opposite GAMCO Global and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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