Correlation Between Gabelli Gold and Stone Ridge
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Stone Ridge 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 Stone Ridge 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 Stone Ridge Diversified, you can compare the effects of market volatilities on Gabelli Gold and Stone Ridge 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 Stone Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Stone Ridge.
Diversification Opportunities for Gabelli Gold and Stone Ridge
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Stone is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Stone Ridge Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Ridge Diversified 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 Stone Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Ridge Diversified has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Stone Ridge go up and down completely randomly.
Pair Corralation between Gabelli Gold and Stone Ridge
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 7.35 times more return on investment than Stone Ridge. However, Gabelli Gold is 7.35 times more volatile than Stone Ridge Diversified. It trades about 0.47 of its potential returns per unit of risk. Stone Ridge Diversified is currently generating about -0.19 per unit of risk. If you would invest 2,135 in Gabelli Gold Fund on November 9, 2024 and sell it today you would earn a total of 262.00 from holding Gabelli Gold Fund or generate 12.27% 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. Stone Ridge Diversified
Performance |
| Timeline |
| Gabelli Gold |
| Stone Ridge Diversified |
Gabelli Gold and Stone Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Stone Ridge
The main advantage of trading using opposite Gabelli Gold and Stone Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Stone Ridge 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 Stone Ridge will offset losses from the drop in Stone Ridge's long position.| Gabelli Gold vs. Lord Abbett Diversified | Gabelli Gold vs. Principal Lifetime Hybrid | Gabelli Gold vs. Aqr Diversified Arbitrage | Gabelli Gold vs. Intermediate Term Tax Free Bond |
| Stone Ridge vs. Ab Bond Inflation | Stone Ridge vs. Fidelity Sai Inflationfocused | Stone Ridge vs. Schwab Treasury Inflation | Stone Ridge vs. Ab Bond Inflation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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