Correlation Between Gabelli Gold and Hennessy Gas
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Hennessy Gas 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 Hennessy Gas 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 Hennessy Gas Utility, you can compare the effects of market volatilities on Gabelli Gold and Hennessy Gas 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 Hennessy Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Hennessy Gas.
Diversification Opportunities for Gabelli Gold and Hennessy Gas
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Hennessy is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Hennessy Gas Utility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Gas Utility 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 Hennessy Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Gas Utility has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Hennessy Gas go up and down completely randomly.
Pair Corralation between Gabelli Gold and Hennessy Gas
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Hennessy Gas. In addition to that, Gabelli Gold is 2.54 times more volatile than Hennessy Gas Utility. It trades about -0.12 of its total potential returns per unit of risk. Hennessy Gas Utility is currently generating about 0.66 per unit of volatility. If you would invest 2,720 in Hennessy Gas Utility on September 3, 2024 and sell it today you would earn a total of 289.00 from holding Hennessy Gas Utility or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Hennessy Gas Utility
Performance |
| Timeline |
| Gabelli Gold |
| Hennessy Gas Utility |
Gabelli Gold and Hennessy Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Hennessy Gas
The main advantage of trading using opposite Gabelli Gold and Hennessy Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Hennessy Gas 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 Hennessy Gas will offset losses from the drop in Hennessy Gas' long position.| Gabelli Gold vs. Global Gold Fund | Gabelli Gold vs. Gold And Precious | Gabelli Gold vs. World Precious Minerals | Gabelli Gold vs. First Eagle Gold |
| Hennessy Gas vs. Utilities Fund Investor | Hennessy Gas vs. Amg Yacktman Focused | Hennessy Gas vs. Chemicals Portfolio Chemicals | Hennessy Gas vs. Invesco Energy 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |