Correlation Between Gabelli Multimedia and OFS Credit
Can any of the company-specific risk be diversified away by investing in both Gabelli Multimedia and OFS Credit 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 OFS Credit 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 OFS Credit Company,, you can compare the effects of market volatilities on Gabelli Multimedia and OFS Credit 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 OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Multimedia and OFS Credit.
Diversification Opportunities for Gabelli Multimedia and OFS Credit
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and OFS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Multimedia and OFS Credit Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit , 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 OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit , has no effect on the direction of Gabelli Multimedia i.e., Gabelli Multimedia and OFS Credit go up and down completely randomly.
Pair Corralation between Gabelli Multimedia and OFS Credit
Assuming the 90 days trading horizon Gabelli Multimedia is expected to generate 2.95 times less return on investment than OFS Credit. In addition to that, Gabelli Multimedia is 3.2 times more volatile than OFS Credit Company,. It trades about 0.02 of its total potential returns per unit of risk. OFS Credit Company, is currently generating about 0.23 per unit of volatility. If you would invest 2,441 in OFS Credit Company, on August 31, 2024 and sell it today you would earn a total of 58.00 from holding OFS Credit Company, or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 10.96% |
| Values | Daily Returns |
The Gabelli Multimedia vs. OFS Credit Company,
Performance |
| Timeline |
| The Gabelli Multimedia |
| OFS Credit , |
Gabelli Multimedia and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Multimedia and OFS Credit
The main advantage of trading using opposite Gabelli Multimedia and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Multimedia position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit'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 |
| OFS Credit vs. Prospect Capital | OFS Credit vs. State Street | OFS Credit vs. OFS Credit | OFS Credit vs. OFS Credit |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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