Correlation Between Gabelli Gold and State Street
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Gabelli Gold and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and State Street.
Diversification Opportunities for Gabelli Gold and State Street
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gabelli and State is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and State Street go up and down completely randomly.
Pair Corralation between Gabelli Gold and State Street
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 5.51 times more return on investment than State Street. However, Gabelli Gold is 5.51 times more volatile than State Street Aggregate. It trades about 0.31 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.16 per unit of risk. If you would invest 2,108 in Gabelli Gold Fund on September 14, 2024 and sell it today you would earn a total of 213.00 from holding Gabelli Gold Fund or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gabelli Gold Fund vs. State Street Aggregate
Performance |
| Timeline |
| Gabelli Gold |
| State Street Aggregate |
Gabelli Gold and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and State Street
The main advantage of trading using opposite Gabelli Gold and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Gabelli Gold vs. Commonwealth Real Estate | Gabelli Gold vs. Virtus Real Estate | Gabelli Gold vs. Prudential Real Estate | Gabelli Gold vs. Neuberger Berman Real |
| State Street vs. Invesco Gold Special | State Street vs. Gabelli Gold Fund | State Street vs. Sprott Gold Equity | State Street vs. Great West Goldman Sachs |
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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