Correlation Between Teton Westwood and The Gabelli
Can any of the company-specific risk be diversified away by investing in both Teton Westwood and The Gabelli 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 Teton Westwood and The Gabelli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teton Westwood Mighty and The Gabelli Small, you can compare the effects of market volatilities on Teton Westwood and The Gabelli 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 Teton Westwood with a short position of The Gabelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teton Westwood and The Gabelli.
Diversification Opportunities for Teton Westwood and The Gabelli
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teton and The is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Teton Westwood Mighty and The Gabelli Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Small and Teton Westwood 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 Teton Westwood Mighty are associated (or correlated) with The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Small has no effect on the direction of Teton Westwood i.e., Teton Westwood and The Gabelli go up and down completely randomly.
Pair Corralation between Teton Westwood and The Gabelli
Assuming the 90 days horizon Teton Westwood is expected to generate 1.18 times less return on investment than The Gabelli. In addition to that, Teton Westwood is 1.15 times more volatile than The Gabelli Small. It trades about 0.23 of its total potential returns per unit of risk. The Gabelli Small is currently generating about 0.31 per unit of volatility. If you would invest 4,323 in The Gabelli Small on September 1, 2024 and sell it today you would earn a total of 392.00 from holding The Gabelli Small or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Teton Westwood Mighty vs. The Gabelli Small
Performance |
| Timeline |
| Teton Westwood Mighty |
| Gabelli Small |
Teton Westwood and The Gabelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teton Westwood and The Gabelli
The main advantage of trading using opposite Teton Westwood and The Gabelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teton Westwood position performs unexpectedly, The Gabelli 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 The Gabelli will offset losses from the drop in The Gabelli's long position.| Teton Westwood vs. The Gabelli Small | Teton Westwood vs. Teton Westwood Equity | Teton Westwood vs. Teton Westwood Small | Teton Westwood vs. The Gabelli Equity |
| The Gabelli vs. The Gabelli Asset | The Gabelli vs. The Gabelli Equity | The Gabelli vs. The Gabelli Growth | The Gabelli vs. Parnassus E Equity |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |