Correlation Between Gabelli Multimedia and Customers Bancorp
Can any of the company-specific risk be diversified away by investing in both Gabelli Multimedia and Customers Bancorp 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 Gabelli Multimedia and Customers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Multimedia and Customers Bancorp, you can compare the effects of market volatilities on Gabelli Multimedia and Customers Bancorp 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 Gabelli Multimedia with a short position of Customers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Multimedia and Customers Bancorp.
Diversification Opportunities for Gabelli Multimedia and Customers Bancorp
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gabelli and Customers is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Multimedia and Customers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Customers Bancorp and Gabelli Multimedia 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 The Gabelli Multimedia are associated (or correlated) with Customers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Customers Bancorp has no effect on the direction of Gabelli Multimedia i.e., Gabelli Multimedia and Customers Bancorp go up and down completely randomly.
Pair Corralation between Gabelli Multimedia and Customers Bancorp
Assuming the 90 days trading horizon The Gabelli Multimedia is expected to under-perform the Customers Bancorp. In addition to that, Gabelli Multimedia is 1.07 times more volatile than Customers Bancorp. It trades about -0.2 of its total potential returns per unit of risk. Customers Bancorp is currently generating about 0.19 per unit of volatility. If you would invest 2,567 in Customers Bancorp on August 28, 2024 and sell it today you would earn a total of 51.00 from holding Customers Bancorp or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Multimedia vs. Customers Bancorp
Performance |
| Timeline |
| The Gabelli Multimedia |
| Customers Bancorp |
Gabelli Multimedia and Customers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Multimedia and Customers Bancorp
The main advantage of trading using opposite Gabelli Multimedia and Customers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Multimedia position performs unexpectedly, Customers Bancorp 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 Customers Bancorp will offset losses from the drop in Customers Bancorp's long position.| Gabelli Multimedia vs. Virtus AllianzGI Convertible | Gabelli Multimedia vs. The Gabelli Equity | Gabelli Multimedia vs. Oxford Lane Capital | Gabelli Multimedia 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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