Correlation Between White Oak and Gamco Global
Can any of the company-specific risk be diversified away by investing in both White Oak 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 White Oak and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between White Oak Select and Gamco Global Growth, you can compare the effects of market volatilities on White Oak 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 White Oak with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of White Oak and Gamco Global.
Diversification Opportunities for White Oak and Gamco Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between White and Gamco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding White Oak Select and Gamco Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Growth and White Oak 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 White Oak Select 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 Growth has no effect on the direction of White Oak i.e., White Oak and Gamco Global go up and down completely randomly.
Pair Corralation between White Oak and Gamco Global
Assuming the 90 days horizon White Oak is expected to generate 1.71 times less return on investment than Gamco Global. In addition to that, White Oak is 1.04 times more volatile than Gamco Global Growth. It trades about 0.17 of its total potential returns per unit of risk. Gamco Global Growth is currently generating about 0.31 per unit of volatility. If you would invest 5,715 in Gamco Global Growth on September 1, 2024 and sell it today you would earn a total of 308.00 from holding Gamco Global Growth or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
White Oak Select vs. Gamco Global Growth
Performance |
| Timeline |
| White Oak Select |
| Gamco Global Growth |
White Oak and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with White Oak and Gamco Global
The main advantage of trading using opposite White Oak and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if White Oak 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.| White Oak vs. Red Oak Technology | White Oak vs. Pin Oak Equity | White Oak vs. Black Oak Emerging | White Oak vs. Clearbridge Value Trust |
| Gamco Global vs. Gabelli Esg Fund | Gamco Global vs. Gabelli Global Financial | Gamco Global vs. The Gabelli Equity | Gamco 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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