Correlation Between GAMCO Global and PRECISION
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By analyzing existing cross correlation between GAMCO Global Gold and PRECISION CASTPARTS P, you can compare the effects of market volatilities on GAMCO Global and PRECISION 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 PRECISION. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and PRECISION.
Diversification Opportunities for GAMCO Global and PRECISION
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GAMCO and PRECISION is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and PRECISION CASTPARTS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRECISION CASTPARTS 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 PRECISION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRECISION CASTPARTS has no effect on the direction of GAMCO Global i.e., GAMCO Global and PRECISION go up and down completely randomly.
Pair Corralation between GAMCO Global and PRECISION
Assuming the 90 days trading horizon GAMCO Global Gold is expected to under-perform the PRECISION. But the preferred stock apears to be less risky and, when comparing its historical volatility, GAMCO Global Gold is 2.05 times less risky than PRECISION. The preferred stock trades about -0.09 of its potential returns per unit of risk. The PRECISION CASTPARTS P is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 8,238 in PRECISION CASTPARTS P on September 14, 2024 and sell it today you would earn a total of 283.00 from holding PRECISION CASTPARTS P or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
GAMCO Global Gold vs. PRECISION CASTPARTS P
Performance |
| Timeline |
| GAMCO Global Gold |
| PRECISION CASTPARTS |
GAMCO Global and PRECISION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and PRECISION
The main advantage of trading using opposite GAMCO Global and PRECISION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, PRECISION 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 PRECISION will offset losses from the drop in PRECISION'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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