Correlation Between Gabelli Global and Ellsworth Convertible
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Ellsworth Convertible 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 Global and Ellsworth Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Small and Ellsworth Convertible Growth, you can compare the effects of market volatilities on Gabelli Global and Ellsworth Convertible 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 Global with a short position of Ellsworth Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Ellsworth Convertible.
Diversification Opportunities for Gabelli Global and Ellsworth Convertible
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Ellsworth is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Ellsworth Convertible Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Convertible and Gabelli 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 Gabelli Global Small are associated (or correlated) with Ellsworth Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Convertible has no effect on the direction of Gabelli Global i.e., Gabelli Global and Ellsworth Convertible go up and down completely randomly.
Pair Corralation between Gabelli Global and Ellsworth Convertible
Considering the 90-day investment horizon Gabelli Global is expected to generate 1.31 times less return on investment than Ellsworth Convertible. In addition to that, Gabelli Global is 1.07 times more volatile than Ellsworth Convertible Growth. It trades about 0.05 of its total potential returns per unit of risk. Ellsworth Convertible Growth is currently generating about 0.06 per unit of volatility. If you would invest 730.00 in Ellsworth Convertible Growth on August 30, 2024 and sell it today you would earn a total of 261.00 from holding Ellsworth Convertible Growth or generate 35.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Small vs. Ellsworth Convertible Growth
Performance |
| Timeline |
| Gabelli Global Small |
| Ellsworth Convertible |
Gabelli Global and Ellsworth Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Ellsworth Convertible
The main advantage of trading using opposite Gabelli Global and Ellsworth Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Ellsworth Convertible 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 Ellsworth Convertible will offset losses from the drop in Ellsworth Convertible's long position.| Gabelli Global vs. Invesco High Income | Gabelli Global vs. Blackrock Muniholdings Ny | Gabelli Global vs. Nuveen California Select | Gabelli Global vs. MFS Investment Grade |
| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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