Correlation Between Old Westbury and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Gamco Global Telecommunications, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Gamco Global.
Diversification Opportunities for Old Westbury and Gamco Global
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and Gamco is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom and Old Westbury 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 Old Westbury Municipal 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 Telecom has no effect on the direction of Old Westbury i.e., Old Westbury and Gamco Global go up and down completely randomly.
Pair Corralation between Old Westbury and Gamco Global
Assuming the 90 days horizon Old Westbury is expected to generate 3.34 times less return on investment than Gamco Global. But when comparing it to its historical volatility, Old Westbury Municipal is 5.18 times less risky than Gamco Global. It trades about 0.51 of its potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,313 in Gamco Global Telecommunications on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Gamco Global Telecommunications or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Gamco Global Telecommunication
Performance |
| Timeline |
| Old Westbury Municipal |
| Gamco Global Telecom |
Old Westbury and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Gamco Global
The main advantage of trading using opposite Old Westbury and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury California | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Fixed |
| Gamco Global vs. Ab Global Real | Gamco Global vs. Dreyfusstandish Global Fixed | Gamco Global vs. Siit Global Managed | Gamco Global vs. Artisan Global Unconstrained |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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