Correlation Between Gabelli Value and Dana Large
Can any of the company-specific risk be diversified away by investing in both Gabelli Value and Dana Large 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 Value and Dana Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Value and Dana Large Cap, you can compare the effects of market volatilities on Gabelli Value and Dana Large 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 Value with a short position of Dana Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Value and Dana Large.
Diversification Opportunities for Gabelli Value and Dana Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Dana is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Value and Dana Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Large Cap and Gabelli Value 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 The Gabelli Value are associated (or correlated) with Dana Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Large Cap has no effect on the direction of Gabelli Value i.e., Gabelli Value and Dana Large go up and down completely randomly.
Pair Corralation between Gabelli Value and Dana Large
Assuming the 90 days horizon Gabelli Value is expected to generate 1.99 times less return on investment than Dana Large. In addition to that, Gabelli Value is 1.1 times more volatile than Dana Large Cap. It trades about 0.05 of its total potential returns per unit of risk. Dana Large Cap is currently generating about 0.11 per unit of volatility. If you would invest 1,812 in Dana Large Cap on September 3, 2024 and sell it today you would earn a total of 898.00 from holding Dana Large Cap or generate 49.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gabelli Value vs. Dana Large Cap
Performance |
| Timeline |
| Gabelli Value |
| Dana Large Cap |
Gabelli Value and Dana Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Value and Dana Large
The main advantage of trading using opposite Gabelli Value and Dana Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Value position performs unexpectedly, Dana Large 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 Dana Large will offset losses from the drop in Dana Large's long position.| Gabelli Value vs. Gabelli Gold Fund | Gabelli Value vs. Fidelity Advisor Gold | Gabelli Value vs. Sprott Gold Equity | Gabelli Value vs. James Balanced Golden |
| Dana Large vs. Msift High Yield | Dana Large vs. Gmo High Yield | Dana Large vs. Guggenheim High Yield | Dana Large vs. Pgim High Yield |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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