Correlation Between Gamco Global and Western Asset
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Western Asset 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 Western Asset 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 Western Asset Inflation, you can compare the effects of market volatilities on Gamco Global and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Western Asset.
Diversification Opportunities for Gamco Global and Western Asset
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gamco and Western is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Gold and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Gamco Global i.e., Gamco Global and Western Asset go up and down completely randomly.
Pair Corralation between Gamco Global and Western Asset
Assuming the 90 days horizon Gamco Global Gold is expected to generate 2.1 times more return on investment than Western Asset. However, Gamco Global is 2.1 times more volatile than Western Asset Inflation. It trades about 0.02 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.01 per unit of risk. If you would invest 382.00 in Gamco Global Gold on September 2, 2024 and sell it today you would earn a total of 35.00 from holding Gamco Global Gold or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Gold vs. Western Asset Inflation
Performance |
| Timeline |
| Gamco Global Gold |
| Western Asset Inflation |
Gamco Global and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Western Asset
The main advantage of trading using opposite Gamco Global and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Gamco Global vs. Dunham Porategovernment Bond | Gamco Global vs. Virtus Seix Government | Gamco Global vs. Blackrock Government Bond | Gamco Global vs. Lord Abbett Government |
| Western Asset vs. Wasatch Global Opportunities | Western Asset vs. Pimco Global Multi Asset | Western Asset vs. Wisdomtree Siegel Global | Western Asset vs. Ms Global Fixed |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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