Correlation Between Gabelli MultiMedia and CBH
Can any of the company-specific risk be diversified away by investing in both Gabelli MultiMedia and CBH 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 CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli MultiMedia Mutual and CBH, you can compare the effects of market volatilities on Gabelli MultiMedia and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli MultiMedia and CBH.
Diversification Opportunities for Gabelli MultiMedia and CBH
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and CBH is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli MultiMedia Mutual and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 Gabelli MultiMedia Mutual are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Gabelli MultiMedia i.e., Gabelli MultiMedia and CBH go up and down completely randomly.
Pair Corralation between Gabelli MultiMedia and CBH
If you would invest 464.00 in Gabelli MultiMedia Mutual on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Gabelli MultiMedia Mutual or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Gabelli MultiMedia Mutual vs. CBH
Performance |
| Timeline |
| Gabelli MultiMedia Mutual |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gabelli MultiMedia and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli MultiMedia and CBH
The main advantage of trading using opposite Gabelli MultiMedia and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli MultiMedia position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Gabelli MultiMedia vs. Gabelli Equity Trust | Gabelli MultiMedia vs. Gabelli Healthcare WellnessRx | Gabelli MultiMedia vs. Gabelli Convertible And | Gabelli MultiMedia vs. Gabelli Dividend Income |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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