Correlation Between Gamco Global and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Dunham Large 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 Gamco Global and Dunham Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Gold and Dunham Large Cap, you can compare the effects of market volatilities on Gamco Global and Dunham Large 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 Gamco Global with a short position of Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Dunham Large.
Diversification Opportunities for Gamco Global and Dunham Large
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gamco and Dunham is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large Cap and Gamco Global 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 Gamco Global Gold are associated (or correlated) with Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Gamco Global i.e., Gamco Global and Dunham Large go up and down completely randomly.
Pair Corralation between Gamco Global and Dunham Large
Assuming the 90 days horizon Gamco Global Gold is expected to generate 1.95 times more return on investment than Dunham Large. However, Gamco Global is 1.95 times more volatile than Dunham Large Cap. It trades about 0.06 of its potential returns per unit of risk. Dunham Large Cap is currently generating about -0.16 per unit of risk. If you would invest 410.00 in Gamco Global Gold on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Gamco Global Gold or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Dunham Large Cap
Performance |
| Timeline |
| Gamco Global Gold |
| Dunham Large Cap |
Gamco Global and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Dunham Large
The main advantage of trading using opposite Gamco Global and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Gamco Global vs. Prudential Health Sciences | Gamco Global vs. Lord Abbett Health | Gamco Global vs. Alphacentric Lifesci Healthcare | Gamco Global vs. Health Biotchnology Portfolio |
| Dunham Large vs. Pioneer Diversified High | Dunham Large vs. Adams Diversified Equity | Dunham Large vs. Tiaa Cref Small Cap Blend | Dunham Large vs. Davenport Small Cap |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |