Correlation Between GAMCO Natural and CBH
Can any of the company-specific risk be diversified away by investing in both GAMCO Natural and CBH 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 GAMCO Natural and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Natural Resources and CBH, you can compare the effects of market volatilities on GAMCO Natural and CBH 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 GAMCO Natural with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Natural and CBH.
Diversification Opportunities for GAMCO Natural and CBH
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GAMCO and CBH is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Natural Resources and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and GAMCO Natural 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 GAMCO Natural Resources are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of GAMCO Natural i.e., GAMCO Natural and CBH go up and down completely randomly.
Pair Corralation between GAMCO Natural and CBH
If you would invest 1,757 in CBH on August 25, 2024 and sell it today you would earn a total of 0.00 from holding CBH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
GAMCO Natural Resources vs. CBH
Performance |
| Timeline |
| GAMCO Natural Resources |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
GAMCO Natural and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Natural and CBH
The main advantage of trading using opposite GAMCO Natural and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Natural position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| GAMCO Natural vs. MFS High Income | GAMCO Natural vs. MFS Investment Grade | GAMCO Natural vs. Eaton Vance National | GAMCO Natural vs. Invesco High Income |
| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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