Correlation Between Gabelli Gold and Mainstay Defensive
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Mainstay Defensive 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 Mainstay Defensive 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 Mainstay Defensive Etf, you can compare the effects of market volatilities on Gabelli Gold and Mainstay Defensive 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 Mainstay Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Mainstay Defensive.
Diversification Opportunities for Gabelli Gold and Mainstay Defensive
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Mainstay is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Mainstay Defensive Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Defensive Etf 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 Mainstay Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Defensive Etf has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Mainstay Defensive go up and down completely randomly.
Pair Corralation between Gabelli Gold and Mainstay Defensive
If you would invest 1,987 in Gabelli Gold Fund on September 3, 2024 and sell it today you would earn a total of 244.00 from holding Gabelli Gold Fund or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Mainstay Defensive Etf
Performance |
| Timeline |
| Gabelli Gold |
| Mainstay Defensive Etf |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gabelli Gold and Mainstay Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Mainstay Defensive
The main advantage of trading using opposite Gabelli Gold and Mainstay Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Mainstay Defensive 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 Mainstay Defensive will offset losses from the drop in Mainstay Defensive's long position.| Gabelli Gold vs. Simt Real Estate | Gabelli Gold vs. Amg Managers Centersquare | Gabelli Gold vs. Vanguard Reit Index | Gabelli Gold vs. Dunham Real Estate |
| Mainstay Defensive vs. T Rowe Price | Mainstay Defensive vs. Vanguard Windsor Fund | Mainstay Defensive vs. Qs Growth Fund | Mainstay Defensive vs. T Rowe Price |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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