Correlation Between Gamco Global and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Glg Intl 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 Glg Intl 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 Glg Intl Small, you can compare the effects of market volatilities on Gamco Global and Glg Intl 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 Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Glg Intl.
Diversification Opportunities for Gamco Global and Glg Intl
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamco and Glg is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small 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 Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Gamco Global i.e., Gamco Global and Glg Intl go up and down completely randomly.
Pair Corralation between Gamco Global and Glg Intl
Assuming the 90 days horizon Gamco Global Gold is expected to generate 0.84 times more return on investment than Glg Intl. However, Gamco Global Gold is 1.19 times less risky than Glg Intl. It trades about 0.45 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.1 per unit of risk. If you would invest 386.00 in Gamco Global Gold on October 19, 2024 and sell it today you would earn a total of 24.00 from holding Gamco Global Gold or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Glg Intl Small
Performance |
| Timeline |
| Gamco Global Gold |
| Glg Intl Small |
Gamco Global and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Glg Intl
The main advantage of trading using opposite Gamco Global and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Gamco Global vs. Tax Managed Mid Small | Gamco Global vs. Wilmington Diversified Income | Gamco Global vs. Tax Managed Mid Small | Gamco Global vs. Schwab Small Cap Index |
| Glg Intl vs. International Investors Gold | Glg Intl vs. James Balanced Golden | Glg Intl vs. Global Gold Fund | Glg Intl vs. Gamco Global Gold |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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