Correlation Between Gabelli Gold and Clearbridge Aggressive
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Clearbridge Aggressive 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 Clearbridge Aggressive 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 Clearbridge Aggressive Growth, you can compare the effects of market volatilities on Gabelli Gold and Clearbridge Aggressive 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 Clearbridge Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Clearbridge Aggressive.
Diversification Opportunities for Gabelli Gold and Clearbridge Aggressive
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gabelli and Clearbridge is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Clearbridge Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Aggressive 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 Clearbridge Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Aggressive has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Clearbridge Aggressive go up and down completely randomly.
Pair Corralation between Gabelli Gold and Clearbridge Aggressive
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Clearbridge Aggressive. In addition to that, Gabelli Gold is 1.69 times more volatile than Clearbridge Aggressive Growth. It trades about -0.11 of its total potential returns per unit of risk. Clearbridge Aggressive Growth is currently generating about 0.29 per unit of volatility. If you would invest 14,724 in Clearbridge Aggressive Growth on September 2, 2024 and sell it today you would earn a total of 1,024 from holding Clearbridge Aggressive Growth or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Clearbridge Aggressive Growth
Performance |
| Timeline |
| Gabelli Gold |
| Clearbridge Aggressive |
Gabelli Gold and Clearbridge Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Clearbridge Aggressive
The main advantage of trading using opposite Gabelli Gold and Clearbridge Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Clearbridge Aggressive 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 Clearbridge Aggressive will offset losses from the drop in Clearbridge Aggressive's long position.| Gabelli Gold vs. Gabelli Esg Fund | Gabelli Gold vs. Gabelli Global Financial | Gabelli Gold vs. The Gabelli Equity | Gabelli Gold vs. Gamco International Growth |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets |