Correlation Between Gabelli Equity and Gabelli Gold

Can any of the company-specific risk be diversified away by investing in both Gabelli Equity 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 Gabelli Equity and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Gabelli Equity and Gabelli Gold Fund, you can compare the effects of market volatilities on Gabelli Equity 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 Gabelli Equity with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Gabelli Gold.

Diversification Opportunities for Gabelli Equity and Gabelli Gold

0.0

Correlation Coefficient

Gabelli Equity  Gabelli Gold

Pay attention - limited upside

The 3 months correlation between Gabelli and Gabelli is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Equity and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Gabelli Equity 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 Equity 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 Gabelli Equity i.e., Gabelli Equity and Gabelli Gold go up and down completely randomly.

Pair Corralation between Gabelli Equity and Gabelli Gold

If you would invest  1,884  in Gabelli Gold Fund on February 14, 2024 and sell it today you would earn a total of  111.00  from holding Gabelli Gold Fund or generate 5.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

The Gabelli Equity  vs.  Gabelli Gold Fund

Gabelli Equity

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days The Gabelli Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Gabelli Equity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gabelli Gold

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Gold Fund are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gabelli Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gabelli Equity and Gabelli Gold

The main advantage of trading using opposite Gabelli Equity and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity 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.

The idea behind The Gabelli Equity and Gabelli Gold Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..