Correlation Between Gabelli Global and Highland Floating
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Highland Floating 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 Highland Floating 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 Highland Floating Rate, you can compare the effects of market volatilities on Gabelli Global and Highland Floating 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 Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Highland Floating.
Diversification Opportunities for Gabelli Global and Highland Floating
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gabelli and Highland is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate 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 Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of Gabelli Global i.e., Gabelli Global and Highland Floating go up and down completely randomly.
Pair Corralation between Gabelli Global and Highland Floating
Considering the 90-day investment horizon Gabelli Global Small is expected to generate 0.54 times more return on investment than Highland Floating. However, Gabelli Global Small is 1.85 times less risky than Highland Floating. It trades about 0.12 of its potential returns per unit of risk. Highland Floating Rate is currently generating about -0.03 per unit of risk. If you would invest 1,241 in Gabelli Global Small on August 30, 2024 and sell it today you would earn a total of 58.00 from holding Gabelli Global Small or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Small vs. Highland Floating Rate
Performance |
| Timeline |
| Gabelli Global Small |
| Highland Floating Rate |
Gabelli Global and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Highland Floating
The main advantage of trading using opposite Gabelli Global and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating'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 |
| Highland Floating vs. Gabelli Global Small | Highland Floating vs. MFS Investment Grade | Highland Floating vs. Eaton Vance National | Highland Floating vs. GAMCO Natural Resources |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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