Correlation Between Gabelli Gold and Western Asset
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Gabelli Gold and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Western Asset.
Diversification Opportunities for Gabelli Gold and Western Asset
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gabelli and WESTERN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Western Asset go up and down completely randomly.
Pair Corralation between Gabelli Gold and Western Asset
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Western Asset. In addition to that, Gabelli Gold is 6.51 times more volatile than Western Asset Inflation. It trades about -0.12 of its total potential returns per unit of risk. Western Asset Inflation is currently generating about 0.02 per unit of volatility. If you would invest 935.00 in Western Asset Inflation on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Western Asset Inflation or generate 0.11% 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. Western Asset Inflation
Performance |
| Timeline |
| Gabelli Gold |
| Western Asset Inflation |
Gabelli Gold and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Western Asset
The main advantage of trading using opposite Gabelli Gold and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Gabelli Gold vs. Limited Term Tax | Gabelli Gold vs. Barings Active Short | Gabelli Gold vs. Multisector Bond Sma | Gabelli Gold vs. T Rowe Price |
| Western Asset vs. Rational Special Situations | Western Asset vs. Balanced Fund Investor | Western Asset vs. Ab Global Risk | Western Asset vs. Ab Value Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stocks Directory Find actively traded stocks across global markets |