Correlation Between Investec Emerging and Gabelli Gold
Can any of the company-specific risk be diversified away by investing in both Investec Emerging and Gabelli Gold 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 Investec Emerging and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Gabelli Gold Fund, you can compare the effects of market volatilities on Investec Emerging and Gabelli Gold 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 Investec Emerging with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Gabelli Gold.
Diversification Opportunities for Investec Emerging and Gabelli Gold
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investec and Gabelli is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Investec Emerging 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 Investec Emerging Markets are associated (or correlated) with Gabelli Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Gold has no effect on the direction of Investec Emerging i.e., Investec Emerging and Gabelli Gold go up and down completely randomly.
Pair Corralation between Investec Emerging and Gabelli Gold
Assuming the 90 days horizon Investec Emerging is expected to generate 10.08 times less return on investment than Gabelli Gold. But when comparing it to its historical volatility, Investec Emerging Markets is 1.66 times less risky than Gabelli Gold. It trades about 0.06 of its potential returns per unit of risk. Gabelli Gold Fund is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,039 in Gabelli Gold Fund on October 25, 2024 and sell it today you would earn a total of 189.00 from holding Gabelli Gold Fund or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Gabelli Gold Fund
Performance |
| Timeline |
| Investec Emerging Markets |
| Gabelli Gold |
Investec Emerging and Gabelli Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Gabelli Gold
The main advantage of trading using opposite Investec Emerging and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging position performs unexpectedly, Gabelli Gold 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 Gabelli Gold will offset losses from the drop in Gabelli Gold's long position.| Investec Emerging vs. Ab All Market | Investec Emerging vs. Barings Emerging Markets | Investec Emerging vs. Alphacentric Hedged Market | Investec Emerging vs. Dws Emerging Markets |
| Gabelli Gold vs. Barings Emerging Markets | Gabelli Gold vs. Black Oak Emerging | Gabelli Gold vs. Investec Emerging Markets | Gabelli Gold vs. Embark Commodity Strategy |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |