Correlation Between Meridian Growth and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Meridian Growth and Gamco Global 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 Meridian Growth and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Growth Fund and Gamco Global Gold, you can compare the effects of market volatilities on Meridian Growth and Gamco Global 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 Meridian Growth with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Growth and Gamco Global.
Diversification Opportunities for Meridian Growth and Gamco Global
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meridian and Gamco is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Growth Fund and Gamco Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Gold and Meridian Growth 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 Meridian Growth Fund are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Gold has no effect on the direction of Meridian Growth i.e., Meridian Growth and Gamco Global go up and down completely randomly.
Pair Corralation between Meridian Growth and Gamco Global
Assuming the 90 days horizon Meridian Growth Fund is expected to generate 1.35 times more return on investment than Gamco Global. However, Meridian Growth is 1.35 times more volatile than Gamco Global Gold. It trades about 0.13 of its potential returns per unit of risk. Gamco Global Gold is currently generating about 0.01 per unit of risk. If you would invest 3,099 in Meridian Growth Fund on September 12, 2024 and sell it today you would earn a total of 236.00 from holding Meridian Growth Fund or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridian Growth Fund vs. Gamco Global Gold
Performance |
| Timeline |
| Meridian Growth |
| Gamco Global Gold |
Meridian Growth and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Growth and Gamco Global
The main advantage of trading using opposite Meridian Growth and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Growth position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| Meridian Growth vs. Rbc Emerging Markets | Meridian Growth vs. Eagle Mlp Strategy | Meridian Growth vs. Franklin Emerging Market | Meridian Growth vs. Black Oak Emerging |
| Gamco Global vs. Rbb Fund | Gamco Global vs. Commonwealth Global Fund | Gamco Global vs. Auer Growth Fund | Gamco Global vs. Small Cap Stock |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |