Correlation Between Gabelli Gold and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Shelton Funds 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 Shelton Funds 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 Shelton Funds , you can compare the effects of market volatilities on Gabelli Gold and Shelton Funds 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 Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Shelton Funds.
Diversification Opportunities for Gabelli Gold and Shelton Funds
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gabelli and Shelton is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds 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 Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Shelton Funds go up and down completely randomly.
Pair Corralation between Gabelli Gold and Shelton Funds
Assuming the 90 days horizon Gabelli Gold is expected to generate 2.22 times less return on investment than Shelton Funds. In addition to that, Gabelli Gold is 1.35 times more volatile than Shelton Funds . It trades about 0.03 of its total potential returns per unit of risk. Shelton Funds is currently generating about 0.08 per unit of volatility. If you would invest 2,538 in Shelton Funds on October 14, 2024 and sell it today you would earn a total of 1,337 from holding Shelton Funds or generate 52.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Shelton Funds
Performance |
| Timeline |
| Gabelli Gold |
| Shelton Funds |
Gabelli Gold and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Shelton Funds
The main advantage of trading using opposite Gabelli Gold and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' long position.| Gabelli Gold vs. Goldman Sachs Short | Gabelli Gold vs. Oppenheimer Gold Special | Gabelli Gold vs. Europac Gold Fund | Gabelli Gold vs. James Balanced Golden |
| Shelton Funds vs. Goldman Sachs Short | Shelton Funds vs. Invesco Gold Special | Shelton Funds vs. Deutsche Gold Precious | Shelton Funds vs. Gabelli Gold Fund |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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