Correlation Between Touchstone Large and Gabelli Growth
Can any of the company-specific risk be diversified away by investing in both Touchstone Large and Gabelli Growth 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 Touchstone Large and Gabelli Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Large Cap and The Gabelli Growth, you can compare the effects of market volatilities on Touchstone Large and Gabelli Growth 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 Touchstone Large with a short position of Gabelli Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Large and Gabelli Growth.
Diversification Opportunities for Touchstone Large and Gabelli Growth
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Gabelli is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Large Cap and The Gabelli Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Growth and Touchstone Large 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 Touchstone Large Cap are associated (or correlated) with Gabelli Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Growth has no effect on the direction of Touchstone Large i.e., Touchstone Large and Gabelli Growth go up and down completely randomly.
Pair Corralation between Touchstone Large and Gabelli Growth
Assuming the 90 days horizon Touchstone Large Cap is expected to under-perform the Gabelli Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Touchstone Large Cap is 1.28 times less risky than Gabelli Growth. The mutual fund trades about -0.2 of its potential returns per unit of risk. The The Gabelli Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 9,444 in The Gabelli Growth on September 13, 2024 and sell it today you would earn a total of 334.00 from holding The Gabelli Growth or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Large Cap vs. The Gabelli Growth
Performance |
| Timeline |
| Touchstone Large Cap |
| Gabelli Growth |
Touchstone Large and Gabelli Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Large and Gabelli Growth
The main advantage of trading using opposite Touchstone Large and Gabelli Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Large position performs unexpectedly, Gabelli Growth 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 Growth will offset losses from the drop in Gabelli Growth's long position.| Touchstone Large vs. Virtus Convertible | Touchstone Large vs. Gabelli Convertible And | Touchstone Large vs. Calamos Dynamic Convertible | Touchstone Large vs. Putnam Convertible Incm Gwth |
| Gabelli Growth vs. Mfs Technology Fund | Gabelli Growth vs. Icon Information Technology | Gabelli Growth vs. Fidelity Advisor Technology | Gabelli Growth vs. Vanguard Information Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |