Correlation Between Gabelli Media and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Gabelli Media and Dow Jones 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 Media and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Media Mogul and Dow Jones Industrial, you can compare the effects of market volatilities on Gabelli Media and Dow Jones 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 Media with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Media and Dow Jones.
Diversification Opportunities for Gabelli Media and Dow Jones
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Dow is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Media Mogul and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Gabelli Media 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 Media Mogul are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Gabelli Media i.e., Gabelli Media and Dow Jones go up and down completely randomly.
Pair Corralation between Gabelli Media and Dow Jones
Assuming the 90 days horizon Gabelli Media is expected to generate 1.84 times less return on investment than Dow Jones. In addition to that, Gabelli Media is 1.15 times more volatile than Dow Jones Industrial. It trades about 0.12 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.25 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 233,449 from holding Dow Jones Industrial or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Media Mogul vs. Dow Jones Industrial
Performance |
| Timeline |
Gabelli Media and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Gabelli Media Mogul
Pair trading matchups for Gabelli Media
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Gabelli Media and Dow Jones
The main advantage of trading using opposite Gabelli Media and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Media position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Gabelli Media vs. Shelton Emerging Markets | Gabelli Media vs. Arrow Managed Futures | Gabelli Media vs. Federated Emerging Market | Gabelli Media vs. Ep Emerging Markets |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 CEOs Directory module to screen CEOs from public companies around the world.
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