Correlation Between Gamco Natural and Dreyfus Natural
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Dreyfus Natural 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 Natural and Dreyfus Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Natural Resources and Dreyfus Natural Resources, you can compare the effects of market volatilities on Gamco Natural and Dreyfus Natural 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 Natural with a short position of Dreyfus Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Dreyfus Natural.
Diversification Opportunities for Gamco Natural and Dreyfus Natural
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMCO and Dreyfus is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Dreyfus Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Natural Resources and Gamco Natural 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 Natural Resources are associated (or correlated) with Dreyfus Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Natural Resources has no effect on the direction of Gamco Natural i.e., Gamco Natural and Dreyfus Natural go up and down completely randomly.
Pair Corralation between Gamco Natural and Dreyfus Natural
Assuming the 90 days horizon Gamco Natural Resources is expected to generate 0.58 times more return on investment than Dreyfus Natural. However, Gamco Natural Resources is 1.74 times less risky than Dreyfus Natural. It trades about 0.04 of its potential returns per unit of risk. Dreyfus Natural Resources is currently generating about 0.01 per unit of risk. If you would invest 602.00 in Gamco Natural Resources on August 27, 2024 and sell it today you would earn a total of 47.00 from holding Gamco Natural Resources or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Natural Resources vs. Dreyfus Natural Resources
Performance |
| Timeline |
| Gamco Natural Resources |
| Dreyfus Natural Resources |
Gamco Natural and Dreyfus Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Dreyfus Natural
The main advantage of trading using opposite Gamco Natural and Dreyfus Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Dreyfus Natural 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 Dreyfus Natural will offset losses from the drop in Dreyfus Natural's long position.| Gamco Natural vs. Prudential Real Estate | Gamco Natural vs. Vy Clarion Real | Gamco Natural vs. Pender Real Estate | Gamco Natural vs. Virtus Real Estate |
| Dreyfus Natural vs. Jennison Natural Resources | Dreyfus Natural vs. Icon Natural Resources | Dreyfus Natural vs. Tortoise Energy Independence | Dreyfus Natural vs. Clearbridge Energy Mlp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |