Correlation Between Gabelli Utility and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Gabelli Utility and Federated Premier 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 Utility and Federated Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Utility Closed and Federated Premier Municipal, you can compare the effects of market volatilities on Gabelli Utility and Federated Premier 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 Utility with a short position of Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utility and Federated Premier.
Diversification Opportunities for Gabelli Utility and Federated Premier
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Utility Closed and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier and Gabelli Utility 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 Utility Closed are associated (or correlated) with Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Gabelli Utility i.e., Gabelli Utility and Federated Premier go up and down completely randomly.
Pair Corralation between Gabelli Utility and Federated Premier
Considering the 90-day investment horizon Gabelli Utility Closed is expected to under-perform the Federated Premier. In addition to that, Gabelli Utility is 2.45 times more volatile than Federated Premier Municipal. It trades about 0.0 of its total potential returns per unit of risk. Federated Premier Municipal is currently generating about 0.03 per unit of volatility. If you would invest 1,026 in Federated Premier Municipal on November 1, 2024 and sell it today you would earn a total of 78.00 from holding Federated Premier Municipal or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Utility Closed vs. Federated Premier Municipal
Performance |
| Timeline |
| Gabelli Utility Closed |
| Federated Premier |
Gabelli Utility and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Utility and Federated Premier
The main advantage of trading using opposite Gabelli Utility and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utility position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier's long position.| Gabelli Utility vs. Gabelli Convertible And | Gabelli Utility vs. Gabelli Equity Trust | Gabelli Utility vs. Gabelli Healthcare WellnessRx | Gabelli Utility vs. GAMCO Natural Resources |
| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance Municipal | Federated Premier vs. DTF Tax Free |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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