Correlation Between Stone Ridge and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Stone Ridge and Gabelli 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 Stone Ridge and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Gabelli Global Mini, you can compare the effects of market volatilities on Stone Ridge and Gabelli 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 Stone Ridge with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Gabelli Global.
Diversification Opportunities for Stone Ridge and Gabelli Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stone and Gabelli is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Gabelli Global Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Mini and Stone Ridge 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 Stone Ridge Diversified are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Mini has no effect on the direction of Stone Ridge i.e., Stone Ridge and Gabelli Global go up and down completely randomly.
Pair Corralation between Stone Ridge and Gabelli Global
Assuming the 90 days horizon Stone Ridge is expected to generate 4.14 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Stone Ridge Diversified is 5.53 times less risky than Gabelli Global. It trades about 0.3 of its potential returns per unit of risk. Gabelli Global Mini is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,128 in Gabelli Global Mini on September 13, 2024 and sell it today you would earn a total of 115.00 from holding Gabelli Global Mini or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Gabelli Global Mini
Performance |
| Timeline |
| Stone Ridge Diversified |
| Gabelli Global Mini |
Stone Ridge and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Gabelli Global
The main advantage of trading using opposite Stone Ridge and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge position performs unexpectedly, Gabelli 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Stone Ridge vs. Barings Global Floating | Stone Ridge vs. Legg Mason Global | Stone Ridge vs. Siit Global Managed | Stone Ridge vs. Ab Global Risk |
| Gabelli Global vs. Gabelli Esg Fund | Gabelli Global vs. Gabelli Global Financial | Gabelli Global vs. The Gabelli Equity | Gabelli Global vs. Gamco International Growth |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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