Correlation Between Gabelli Gold and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Dunham Large 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 Dunham Large 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 Dunham Large Cap, you can compare the effects of market volatilities on Gabelli Gold and Dunham Large 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 Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Dunham Large.
Diversification Opportunities for Gabelli Gold and Dunham Large
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Dunham is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap 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 Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Dunham Large go up and down completely randomly.
Pair Corralation between Gabelli Gold and Dunham Large
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 3.55 times more return on investment than Dunham Large. However, Gabelli Gold is 3.55 times more volatile than Dunham Large Cap. It trades about 0.19 of its potential returns per unit of risk. Dunham Large Cap is currently generating about -0.16 per unit of risk. If you would invest 2,135 in Gabelli Gold Fund on September 13, 2024 and sell it today you would earn a total of 128.00 from holding Gabelli Gold Fund or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Dunham Large Cap
Performance |
| Timeline |
| Gabelli Gold |
| Dunham Large Cap |
Gabelli Gold and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Dunham Large
The main advantage of trading using opposite Gabelli Gold and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Gabelli Gold vs. Lord Abbett Inflation | Gabelli Gold vs. Aqr Managed Futures | Gabelli Gold vs. Blackrock Inflation Protected | Gabelli Gold vs. Deutsche Global Inflation |
| Dunham Large vs. Pioneer Diversified High | Dunham Large vs. Adams Diversified Equity | Dunham Large vs. Tiaa Cref Small Cap Blend | Dunham Large vs. Davenport Small Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |