Correlation Between Gabelli Gold and Banking Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Banking Fund 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 Banking Fund 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 Banking Fund Class, you can compare the effects of market volatilities on Gabelli Gold and Banking Fund 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 Banking Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Banking Fund.
Diversification Opportunities for Gabelli Gold and Banking Fund
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Banking is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Banking Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banking Fund Class 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 Banking Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banking Fund Class has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Banking Fund go up and down completely randomly.
Pair Corralation between Gabelli Gold and Banking Fund
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 1.07 times more return on investment than Banking Fund. However, Gabelli Gold is 1.07 times more volatile than Banking Fund Class. It trades about 0.28 of its potential returns per unit of risk. Banking Fund Class is currently generating about 0.28 per unit of risk. If you would invest 2,017 in Gabelli Gold Fund on October 20, 2024 and sell it today you would earn a total of 149.00 from holding Gabelli Gold Fund or generate 7.39% 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. Banking Fund Class
Performance |
| Timeline |
| Gabelli Gold |
| Banking Fund Class |
Gabelli Gold and Banking Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Banking Fund
The main advantage of trading using opposite Gabelli Gold and Banking Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Banking Fund 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 Banking Fund will offset losses from the drop in Banking Fund's long position.| Gabelli Gold vs. 1919 Financial Services | Gabelli Gold vs. Rmb Mendon Financial | Gabelli Gold vs. Blackrock Financial Institutions | Gabelli Gold vs. Vanguard Financials Index |
| Banking Fund vs. Virtus Multi Strategy Target | Banking Fund vs. Catalystmillburn Hedge Strategy | Banking Fund vs. Dow 2x Strategy | Banking Fund vs. Franklin Emerging Market |
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.
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