Correlation Between Gabelli Gold and Stet California
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Stet California 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 Stet California 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 Stet California Municipal, you can compare the effects of market volatilities on Gabelli Gold and Stet California 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 Stet California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Stet California.
Diversification Opportunities for Gabelli Gold and Stet California
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Stet is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Stet California Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stet California Municipal 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 Stet California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stet California Municipal has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Stet California go up and down completely randomly.
Pair Corralation between Gabelli Gold and Stet California
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Stet California. In addition to that, Gabelli Gold is 7.94 times more volatile than Stet California Municipal. It trades about -0.12 of its total potential returns per unit of risk. Stet California Municipal is currently generating about 0.21 per unit of volatility. If you would invest 1,017 in Stet California Municipal on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Stet California Municipal or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Stet California Municipal
Performance |
| Timeline |
| Gabelli Gold |
| Stet California Municipal |
Gabelli Gold and Stet California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Stet California
The main advantage of trading using opposite Gabelli Gold and Stet California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Stet California 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 Stet California will offset losses from the drop in Stet California'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 |
| Stet California vs. Us Government Securities | Stet California vs. Government Securities Fund | Stet California vs. Us Government Securities | Stet California vs. Dws Government Money |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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