Gabelli Equity Trust Fund Volatility

GAB Fund  USD 5.42  0.01  0.18%   
We consider Gabelli Equity not too volatile. Gabelli Equity Trust holds Efficiency (Sharpe) Ratio of 0.24, which attests that the entity had 0.24% return per unit of standard deviation over the last 3 months. Our philosophy in determining the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Gabelli Equity Trust, which you can use to evaluate the future volatility of the entity. Please check out Gabelli Equity's risk adjusted performance of 0.0956, and Market Risk Adjusted Performance of 1.55 to validate if the risk estimate we provide is consistent with the expected return of 0.19%. Key indicators related to Gabelli Equity's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Gabelli Equity Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Gabelli daily returns, and it is calculated using variance and standard deviation. We also use Gabelli's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gabelli Equity volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Gabelli Equity can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Gabelli Equity at lower prices. For example, an investor can purchase Gabelli stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Gabelli Equity's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Gabelli Fund

  0.89STFGX State Farm GrowthPairCorr
  0.92SMPSX Semiconductor UltrasectorPairCorr
  0.92SMPIX Semiconductor UltrasectorPairCorr
  0.92FSELX Semiconductors PortfolioPairCorr
  0.93OSPPX Oppenheimer Steelpath MlpPairCorr
  0.93SPMPX Invesco Steelpath MlpPairCorr
  0.93FIKGX Fidelity Advisor SemPairCorr
  0.89CISGX Touchstone Sands CapitalPairCorr

Gabelli Equity Market Sensitivity And Downside Risk

Gabelli Equity's beta coefficient measures the volatility of Gabelli fund compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Gabelli fund's returns against your selected market. In other words, Gabelli Equity's beta of 0.0711 provides an investor with an approximation of how much risk Gabelli Equity fund can potentially add to one of your existing portfolios.
Gabelli Equity Trust has low volatility with Treynor Ratio of 1.54, Maximum Drawdown of 5.19 and kurtosis of 1.82. However, we advice all investors to further analyze Gabelli Equity Trust to make certain all market information is desiminated and is consistent with the current expectations about Gabelli Equity upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gabelli Equity's fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gabelli Equity's fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Gabelli Equity Trust Demand Trend
Check current 90 days Gabelli Equity correlation with market (NYSE Composite)

Gabelli Beta

    
  0.0711  
Gabelli standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.78  
It is essential to understand the difference between upside risk (as represented by Gabelli Equity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gabelli Equity's daily returns or price. Since the actual investment returns on holding a position in gabelli fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Gabelli Equity.

Gabelli Equity Trust Fund Volatility Analysis

Volatility refers to the frequency at which Gabelli Equity fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gabelli Equity's price changes. Investors will then calculate the volatility of Gabelli Equity's fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Gabelli Equity's volatility:

Historical Volatility

This type of fund volatility measures Gabelli Equity's fluctuations based on previous trends. It's commonly used to predict Gabelli Equity's future behavior based on its past. However, it cannot conclusively determine the future direction of the fund.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Gabelli Equity's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Gabelli Equity's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Gabelli Equity Trust Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Gabelli Equity Projected Return Density Against Market

Considering the 90-day investment horizon Gabelli Equity has a beta of 0.0711 . This usually indicates as returns on the market go up, Gabelli Equity average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Gabelli Equity Trust will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gabelli Equity or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gabelli Equity's price will be affected by overall fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gabelli fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.1002, implying that it can generate a 0.1 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Gabelli Equity's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how gabelli fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Gabelli Equity Price Volatility?

Several factors can influence a fund's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Gabelli Equity Fund Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gabelli Equity or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gabelli Equity's price will be affected by overall fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gabelli fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of Gabelli Equity is 416.21. The daily returns are distributed with a variance of 0.61 and standard deviation of 0.78. The mean deviation of Gabelli Equity Trust is currently at 0.58. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
0.10
β
Beta against NYSE Composite0.07
σ
Overall volatility
0.78
Ir
Information ratio -0.03

Gabelli Equity Fund Return Volatility

Gabelli Equity historical daily return volatility represents how much of Gabelli Equity fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund has volatility of 0.7841% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5638% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Gabelli Equity Volatility

Volatility is a rate at which the price of Gabelli Equity or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Gabelli Equity may increase or decrease. In other words, similar to Gabelli's beta indicator, it measures the risk of Gabelli Equity and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gabelli Equity fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The Gabelli Equity Trust Inc. is a closed ended equity mutual fund launched by GAMCO Investors, Inc. The Gabelli Equity Trust Inc. was formed on August 21, 1986 and is domiciled in the United States. Gabelli Equity operates under Asset Management classification in the United States and is traded on New York Stock Exchange.
Gabelli Equity's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Gabelli Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Gabelli Equity's price varies over time.

3 ways to utilize Gabelli Equity's volatility to invest better

Higher Gabelli Equity's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Gabelli Equity Trust fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Gabelli Equity Trust fund volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Gabelli Equity Trust investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Gabelli Equity's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Gabelli Equity's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Gabelli Equity Investment Opportunity

Gabelli Equity Trust has a volatility of 0.78 and is 1.39 times more volatile than NYSE Composite. of all equities and portfolios are less risky than Gabelli Equity. Compared to the overall equity markets, volatility of historical daily returns of Gabelli Equity Trust is lower than 6 () of all global equities and portfolios over the last 90 days. Use Gabelli Equity Trust to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The fund experiences a normal upward fluctuation. Check odds of Gabelli Equity to be traded at $5.69 in 90 days.

Significant diversification

The correlation between Gabelli Equity Trust and NYA is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and NYA in the same portfolio, assuming nothing else is changed.

Gabelli Equity Additional Risk Indicators

The analysis of Gabelli Equity's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Gabelli Equity's investment and either accepting that risk or mitigating it. Along with some common measures of Gabelli Equity fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Gabelli Equity Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Gabelli Equity as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Gabelli Equity's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Gabelli Equity's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Gabelli Equity Trust.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gabelli Equity Trust. Also, note that the market value of any Fund could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Gabelli Equity Trust information on this page should be used as a complementary analysis to other Gabelli Equity's statistical models used 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.

Complementary Tools for Gabelli Fund analysis

When running Gabelli Equity's price analysis, check to measure Gabelli Equity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gabelli Equity is operating at the current time. Most of Gabelli Equity's value examination focuses on studying past and present price action to predict the probability of Gabelli Equity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gabelli Equity's price. Additionally, you may evaluate how the addition of Gabelli Equity to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Gabelli Equity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gabelli Equity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gabelli Equity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.