Correlation Between New York and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both New York and Gabelli Equity 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 New York and Gabelli Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Mortgage and The Gabelli Equity, you can compare the effects of market volatilities on New York and Gabelli Equity 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 New York with a short position of Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Gabelli Equity.
Diversification Opportunities for New York and Gabelli Equity
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between New and Gabelli is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity and New York 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 New York Mortgage are associated (or correlated) with Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of New York i.e., New York and Gabelli Equity go up and down completely randomly.
Pair Corralation between New York and Gabelli Equity
Assuming the 90 days horizon New York Mortgage is expected to generate 1.47 times more return on investment than Gabelli Equity. However, New York is 1.47 times more volatile than The Gabelli Equity. It trades about 0.08 of its potential returns per unit of risk. The Gabelli Equity is currently generating about 0.09 per unit of risk. If you would invest 1,967 in New York Mortgage on September 14, 2024 and sell it today you would earn a total of 302.00 from holding New York Mortgage or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
New York Mortgage vs. The Gabelli Equity
Performance |
| Timeline |
| New York Mortgage |
| Gabelli Equity |
New York and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Gabelli Equity
The main advantage of trading using opposite New York and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity's long position.| New York vs. AG Mortgage Investment | New York vs. AG Mortgage Investment | New York vs. Invesco Mortgage Capital | New York vs. Invesco Mortgage Capital |
| Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. Gladstone Commercial Corp | Gabelli Equity vs. New York Mortgage | Gabelli Equity vs. New York Mortgage |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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