Correlation Between Gamco International and Gabelli Growth
Can any of the company-specific risk be diversified away by investing in both Gamco International and Gabelli Growth 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 Gamco International and Gabelli Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco International Growth and The Gabelli Growth, you can compare the effects of market volatilities on Gamco International and Gabelli Growth 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 Gamco International with a short position of Gabelli Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco International and Gabelli Growth.
Diversification Opportunities for Gamco International and Gabelli Growth
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gamco and Gabelli is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gamco International Growth and The Gabelli Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Growth and Gamco International 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 Gamco International Growth are associated (or correlated) with Gabelli Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Growth has no effect on the direction of Gamco International i.e., Gamco International and Gabelli Growth go up and down completely randomly.
Pair Corralation between Gamco International and Gabelli Growth
Assuming the 90 days horizon Gamco International Growth is expected to under-perform the Gabelli Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Gamco International Growth is 1.23 times less risky than Gabelli Growth. The mutual fund trades about -0.05 of its potential returns per unit of risk. The The Gabelli Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,238 in The Gabelli Growth on August 29, 2024 and sell it today you would earn a total of 1,168 from holding The Gabelli Growth or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco International Growth vs. The Gabelli Growth
Performance |
| Timeline |
| Gamco International |
| Gabelli Growth |
Gamco International and Gabelli Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco International and Gabelli Growth
The main advantage of trading using opposite Gamco International and Gabelli Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco International position performs unexpectedly, Gabelli Growth 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 Gabelli Growth will offset losses from the drop in Gabelli Growth's long position.| Gamco International vs. Europacific Growth Fund | Gamco International vs. Europacific Growth Fund | Gamco International vs. Europacific Growth Fund | Gamco International vs. Europacific Growth Fund |
| Gabelli Growth vs. Sprott Gold Equity | Gabelli Growth vs. Global Gold Fund | Gabelli Growth vs. Gamco Global Gold | Gabelli Growth vs. Franklin Gold Precious |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |