Correlation Between Gabelli Global and Champlain Small
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Champlain Small 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 Global and Champlain Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Mini and Champlain Small, you can compare the effects of market volatilities on Gabelli Global and Champlain Small 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 Global with a short position of Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Champlain Small.
Diversification Opportunities for Gabelli Global and Champlain Small
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Champlain is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Mini and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small and Gabelli Global 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 Global Mini are associated (or correlated) with Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of Gabelli Global i.e., Gabelli Global and Champlain Small go up and down completely randomly.
Pair Corralation between Gabelli Global and Champlain Small
Assuming the 90 days horizon Gabelli Global Mini is expected to generate 1.09 times more return on investment than Champlain Small. However, Gabelli Global is 1.09 times more volatile than Champlain Small. It trades about 0.04 of its potential returns per unit of risk. Champlain Small is currently generating about 0.04 per unit of risk. If you would invest 1,067 in Gabelli Global Mini on September 12, 2024 and sell it today you would earn a total of 166.00 from holding Gabelli Global Mini or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Mini vs. Champlain Small
Performance |
| Timeline |
| Gabelli Global Mini |
| Champlain Small |
Gabelli Global and Champlain Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Champlain Small
The main advantage of trading using opposite Gabelli Global and Champlain Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Champlain Small 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 Champlain Small will offset losses from the drop in Champlain Small's long position.| Gabelli Global vs. Champlain Small | Gabelli Global vs. Ab Small Cap | Gabelli Global vs. Ab Small Cap | Gabelli Global vs. Ab Small Cap |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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