Correlation Between Gabelli Gold and Dana Large
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Dana 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 Dana 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 Dana Large Cap, you can compare the effects of market volatilities on Gabelli Gold and Dana 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 Dana Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Dana Large.
Diversification Opportunities for Gabelli Gold and Dana Large
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Dana is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Dana Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana 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 Dana Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Large Cap has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Dana Large go up and down completely randomly.
Pair Corralation between Gabelli Gold and Dana Large
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 2.09 times more return on investment than Dana Large. However, Gabelli Gold is 2.09 times more volatile than Dana Large Cap. It trades about 0.07 of its potential returns per unit of risk. Dana Large Cap is currently generating about 0.14 per unit of risk. If you would invest 1,584 in Gabelli Gold Fund on September 12, 2024 and sell it today you would earn a total of 673.00 from holding Gabelli Gold Fund or generate 42.49% 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. Dana Large Cap
Performance |
| Timeline |
| Gabelli Gold |
| Dana Large Cap |
Gabelli Gold and Dana Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Dana Large
The main advantage of trading using opposite Gabelli Gold and Dana Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Dana 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 Dana Large will offset losses from the drop in Dana Large's long position.| Gabelli Gold vs. First Eagle Gold | Gabelli Gold vs. HUMANA INC | Gabelli Gold vs. Barloworld Ltd ADR | Gabelli Gold vs. Morningstar Unconstrained Allocation |
| Dana Large vs. Gabelli Gold Fund | Dana Large vs. Franklin Gold Precious | Dana Large vs. Europac Gold Fund | Dana Large vs. Sprott Gold Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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