Correlation Between Gabelli Gold and Kopernik Global
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Kopernik Global 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 Kopernik Global 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 Kopernik Global All Cap, you can compare the effects of market volatilities on Gabelli Gold and Kopernik Global 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 Kopernik Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Kopernik Global.
Diversification Opportunities for Gabelli Gold and Kopernik Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Kopernik is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Kopernik Global All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik Global All 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 Kopernik Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik Global All has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Kopernik Global go up and down completely randomly.
Pair Corralation between Gabelli Gold and Kopernik Global
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 2.25 times more return on investment than Kopernik Global. However, Gabelli Gold is 2.25 times more volatile than Kopernik Global All Cap. It trades about 0.07 of its potential returns per unit of risk. Kopernik Global All Cap is currently generating about 0.02 per unit of risk. If you would invest 1,817 in Gabelli Gold Fund on September 14, 2024 and sell it today you would earn a total of 504.00 from holding Gabelli Gold Fund or generate 27.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Kopernik Global All Cap
Performance |
| Timeline |
| Gabelli Gold |
| Kopernik Global All |
Gabelli Gold and Kopernik Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Kopernik Global
The main advantage of trading using opposite Gabelli Gold and Kopernik Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Kopernik Global 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 Kopernik Global will offset losses from the drop in Kopernik Global's long position.| Gabelli Gold vs. Commonwealth Real Estate | Gabelli Gold vs. Virtus Real Estate | Gabelli Gold vs. Prudential Real Estate | Gabelli Gold vs. Neuberger Berman Real |
| Kopernik Global vs. Kopernik Global All Cap | Kopernik Global vs. Kopernik International Fund | Kopernik Global vs. Kopernik International | Kopernik Global vs. Vanguard High Yield Corporate |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |