Correlation Between Gamco Global and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Icon Financial 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 Icon Financial 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 Icon Financial Fund, you can compare the effects of market volatilities on Gamco Global and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Icon Financial.
Diversification Opportunities for Gamco Global and Icon Financial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Icon is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Gamco Global i.e., Gamco Global and Icon Financial go up and down completely randomly.
Pair Corralation between Gamco Global and Icon Financial
Assuming the 90 days horizon Gamco Global Gold is expected to generate 0.32 times more return on investment than Icon Financial. However, Gamco Global Gold is 3.13 times less risky than Icon Financial. It trades about -0.4 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.23 per unit of risk. If you would invest 420.00 in Gamco Global Gold on September 23, 2024 and sell it today you would lose (36.00) from holding Gamco Global Gold or give up 8.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Icon Financial Fund
Performance |
| Timeline |
| Gamco Global Gold |
| Icon Financial |
Gamco Global and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Icon Financial
The main advantage of trading using opposite Gamco Global and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Gamco Global vs. Blrc Sgy Mnp | Gamco Global vs. T Rowe Price | Gamco Global vs. California High Yield Municipal | Gamco Global vs. Pace Municipal Fixed |
| Icon Financial vs. James Balanced Golden | Icon Financial vs. Vy Goldman Sachs | Icon Financial vs. Gabelli Gold Fund | Icon Financial 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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