Correlation Between Gabelli Gold and Washington Mutual
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Washington Mutual 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 Washington Mutual 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 Washington Mutual Investors, you can compare the effects of market volatilities on Gabelli Gold and Washington Mutual 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 Washington Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Washington Mutual.
Diversification Opportunities for Gabelli Gold and Washington Mutual
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabelli and Washington is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual 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 Washington Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Mutual has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Washington Mutual go up and down completely randomly.
Pair Corralation between Gabelli Gold and Washington Mutual
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 1.89 times more return on investment than Washington Mutual. However, Gabelli Gold is 1.89 times more volatile than Washington Mutual Investors. It trades about 0.06 of its potential returns per unit of risk. Washington Mutual Investors is currently generating about 0.05 per unit of risk. If you would invest 2,024 in Gabelli Gold Fund on October 26, 2024 and sell it today you would earn a total of 204.00 from holding Gabelli Gold Fund or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Washington Mutual Investors
Performance |
| Timeline |
| Gabelli Gold |
| Washington Mutual |
Gabelli Gold and Washington Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Washington Mutual
The main advantage of trading using opposite Gabelli Gold and Washington Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Washington Mutual 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 Washington Mutual will offset losses from the drop in Washington Mutual's long position.| Gabelli Gold vs. Siit Equity Factor | Gabelli Gold vs. Ab Servative Wealth | Gabelli Gold vs. Greenspring Fund Retail | Gabelli Gold vs. T Rowe Price |
| Washington Mutual vs. The Gold Bullion | Washington Mutual vs. Goldman Sachs Strategic | Washington Mutual vs. Gabelli Gold Fund | Washington Mutual vs. Deutsche Gold Precious |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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