Correlation Between Gabelli Gold and Dreyfus Bond
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Dreyfus Bond 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 Gold and Dreyfus Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Gold Fund and Dreyfus Bond Market, you can compare the effects of market volatilities on Gabelli Gold and Dreyfus Bond 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 Gold with a short position of Dreyfus Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Dreyfus Bond.
Diversification Opportunities for Gabelli Gold and Dreyfus Bond
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabelli and Dreyfus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Dreyfus Bond Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Bond Market and Gabelli Gold 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 Gold Fund are associated (or correlated) with Dreyfus Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Bond Market has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Dreyfus Bond go up and down completely randomly.
Pair Corralation between Gabelli Gold and Dreyfus Bond
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Dreyfus Bond. In addition to that, Gabelli Gold is 7.12 times more volatile than Dreyfus Bond Market. It trades about -0.15 of its total potential returns per unit of risk. Dreyfus Bond Market is currently generating about -0.37 per unit of volatility. If you would invest 898.00 in Dreyfus Bond Market on October 13, 2024 and sell it today you would lose (16.00) from holding Dreyfus Bond Market or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Dreyfus Bond Market
Performance |
| Timeline |
| Gabelli Gold |
| Dreyfus Bond Market |
Gabelli Gold and Dreyfus Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Dreyfus Bond
The main advantage of trading using opposite Gabelli Gold and Dreyfus Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Dreyfus Bond 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 Dreyfus Bond will offset losses from the drop in Dreyfus Bond's long position.| Gabelli Gold vs. Federated Global Allocation | Gabelli Gold vs. Mirova Global Green | Gabelli Gold vs. Us Global Investors | Gabelli Gold vs. T Rowe Price |
| Dreyfus Bond vs. First Eagle Gold | Dreyfus Bond vs. The Gold Bullion | Dreyfus Bond vs. Gabelli Gold Fund | Dreyfus Bond vs. Oppenheimer Gold Special |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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