Correlation Between Gabelli Multimedia and Western AssetClaymore
Can any of the company-specific risk be diversified away by investing in both Gabelli Multimedia and Western AssetClaymore 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 Western AssetClaymore 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 Western AssetClaymore Infl, you can compare the effects of market volatilities on Gabelli Multimedia and Western AssetClaymore 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 Western AssetClaymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Multimedia and Western AssetClaymore.
Diversification Opportunities for Gabelli Multimedia and Western AssetClaymore
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Western is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Multimedia and Western AssetClaymore Infl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western AssetClaymore 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 Western AssetClaymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western AssetClaymore has no effect on the direction of Gabelli Multimedia i.e., Gabelli Multimedia and Western AssetClaymore go up and down completely randomly.
Pair Corralation between Gabelli Multimedia and Western AssetClaymore
Assuming the 90 days trading horizon Gabelli Multimedia is expected to generate 1.95 times less return on investment than Western AssetClaymore. In addition to that, Gabelli Multimedia is 1.04 times more volatile than Western AssetClaymore Infl. It trades about 0.03 of its total potential returns per unit of risk. Western AssetClaymore Infl is currently generating about 0.07 per unit of volatility. If you would invest 823.00 in Western AssetClaymore Infl on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Western AssetClaymore Infl or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Multimedia vs. Western AssetClaymore Infl
Performance |
| Timeline |
| The Gabelli Multimedia |
| Western AssetClaymore |
Gabelli Multimedia and Western AssetClaymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Multimedia and Western AssetClaymore
The main advantage of trading using opposite Gabelli Multimedia and Western AssetClaymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Multimedia position performs unexpectedly, Western AssetClaymore 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 Western AssetClaymore will offset losses from the drop in Western AssetClaymore'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 |
| Western AssetClaymore vs. MainStay CBRE Global | Western AssetClaymore vs. Cohen Steers Closed | Western AssetClaymore vs. Pgim Global High | Western AssetClaymore vs. The Gabelli Multimedia |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |