Correlation Between Gabelli Healthcare and Mainstay International
Can any of the company-specific risk be diversified away by investing in both Gabelli Healthcare and Mainstay International 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 Gabelli Healthcare and Mainstay International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Healthcare and Mainstay International Opportunities, you can compare the effects of market volatilities on Gabelli Healthcare and Mainstay International 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 Gabelli Healthcare with a short position of Mainstay International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Healthcare and Mainstay International.
Diversification Opportunities for Gabelli Healthcare and Mainstay International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gabelli and MAINSTAY is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Healthcare and Mainstay International Opportu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay International and Gabelli Healthcare 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 The Gabelli Healthcare are associated (or correlated) with Mainstay International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay International has no effect on the direction of Gabelli Healthcare i.e., Gabelli Healthcare and Mainstay International go up and down completely randomly.
Pair Corralation between Gabelli Healthcare and Mainstay International
Assuming the 90 days horizon The Gabelli Healthcare is expected to generate 1.3 times more return on investment than Mainstay International. However, Gabelli Healthcare is 1.3 times more volatile than Mainstay International Opportunities. It trades about -0.04 of its potential returns per unit of risk. Mainstay International Opportunities is currently generating about -0.12 per unit of risk. If you would invest 1,205 in The Gabelli Healthcare on August 30, 2024 and sell it today you would lose (11.00) from holding The Gabelli Healthcare or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Gabelli Healthcare vs. Mainstay International Opportu
Performance |
| Timeline |
| The Gabelli Healthcare |
| Mainstay International |
Gabelli Healthcare and Mainstay International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Healthcare and Mainstay International
The main advantage of trading using opposite Gabelli Healthcare and Mainstay International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Healthcare position performs unexpectedly, Mainstay International 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 Mainstay International will offset losses from the drop in Mainstay International's long position.| Gabelli Healthcare vs. Tekla Healthcare Investors | Gabelli Healthcare vs. Tekla Life Sciences | Gabelli Healthcare vs. Flaherty and Crumrine | Gabelli Healthcare vs. Cohen And Steers |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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