Correlation Between Gabelli Global and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Munivest Fund 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 Munivest Fund 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 Munivest Fund, you can compare the effects of market volatilities on Gabelli Global and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Munivest Fund.
Diversification Opportunities for Gabelli Global and Munivest Fund
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Munivest is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Gabelli Global i.e., Gabelli Global and Munivest Fund go up and down completely randomly.
Pair Corralation between Gabelli Global and Munivest Fund
Considering the 90-day investment horizon Gabelli Global Small is expected to generate 1.75 times more return on investment than Munivest Fund. However, Gabelli Global is 1.75 times more volatile than Munivest Fund. It trades about 0.03 of its potential returns per unit of risk. Munivest Fund is currently generating about 0.05 per unit of risk. If you would invest 1,146 in Gabelli Global Small on September 1, 2024 and sell it today you would earn a total of 159.00 from holding Gabelli Global Small or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Small vs. Munivest Fund
Performance |
| Timeline |
| Gabelli Global Small |
| Munivest Fund |
Gabelli Global and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Munivest Fund
The main advantage of trading using opposite Gabelli Global and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.| Gabelli Global vs. MFS Investment Grade | Gabelli Global vs. Invesco High Income | Gabelli Global vs. Eaton Vance National | Gabelli Global vs. Nuveen California Select |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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