Correlation Between Gabelli Gold and Dunham Small
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Dunham Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Gabelli Gold and Dunham Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Dunham Small.
Diversification Opportunities for Gabelli Gold and Dunham Small
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Dunham is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Dunham Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Small 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Small Cap has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Dunham Small go up and down completely randomly.
Pair Corralation between Gabelli Gold and Dunham Small
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Dunham Small. In addition to that, Gabelli Gold is 1.51 times more volatile than Dunham Small Cap. It trades about -0.12 of its total potential returns per unit of risk. Dunham Small Cap is currently generating about -0.01 per unit of volatility. If you would invest 2,081 in Dunham Small Cap on October 9, 2024 and sell it today you would lose (20.00) from holding Dunham Small Cap or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Dunham Small Cap
Performance |
| Timeline |
| Gabelli Gold |
| Dunham Small Cap |
Gabelli Gold and Dunham Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Dunham Small
The main advantage of trading using opposite Gabelli Gold and Dunham Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Dunham Small 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 Small will offset losses from the drop in Dunham Small's long position.| Gabelli Gold vs. M Large Cap | Gabelli Gold vs. Calvert Large Cap | Gabelli Gold vs. Qs Large Cap | Gabelli Gold vs. Dodge Cox Stock |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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