Correlation Between Gamco Global and Steward Large
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Steward 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 Steward 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 Steward Large Cap, you can compare the effects of market volatilities on Gamco Global and Steward 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 Steward Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Steward Large.
Diversification Opportunities for Gamco Global and Steward Large
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gamco and Steward is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Steward Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward 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 Steward Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Large Cap has no effect on the direction of Gamco Global i.e., Gamco Global and Steward Large go up and down completely randomly.
Pair Corralation between Gamco Global and Steward Large
Assuming the 90 days horizon Gamco Global Gold is expected to under-perform the Steward Large. In addition to that, Gamco Global is 1.06 times more volatile than Steward Large Cap. It trades about -0.1 of its total potential returns per unit of risk. Steward Large Cap is currently generating about 0.4 per unit of volatility. If you would invest 3,101 in Steward Large Cap on September 1, 2024 and sell it today you would earn a total of 221.00 from holding Steward Large Cap or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gamco Global Gold vs. Steward Large Cap
Performance |
| Timeline |
| Gamco Global Gold |
| Steward Large Cap |
Gamco Global and Steward Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Steward Large
The main advantage of trading using opposite Gamco Global and Steward Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Steward 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 Steward Large will offset losses from the drop in Steward Large's long position.| Gamco Global vs. Goldman Sachs Clean | Gamco Global vs. Gabelli Gold Fund | Gamco Global vs. Precious Metals And | Gamco Global vs. James Balanced Golden |
| Steward Large vs. Steward Small Mid Cap | Steward Large vs. Steward Small Mid Cap | Steward Large vs. Steward Ered Call | Steward Large vs. Steward Ered Call |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |