Correlation Between Lkcm Aquinas and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Lkcm Aquinas and Gabelli Global 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 Lkcm Aquinas and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Aquinas Catholic and Gabelli Global Financial, you can compare the effects of market volatilities on Lkcm Aquinas and Gabelli Global 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 Lkcm Aquinas with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Aquinas and Gabelli Global.
Diversification Opportunities for Lkcm Aquinas and Gabelli Global
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lkcm and Gabelli is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Aquinas Catholic and Gabelli Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Financial and Lkcm Aquinas 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 Lkcm Aquinas Catholic are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Financial has no effect on the direction of Lkcm Aquinas i.e., Lkcm Aquinas and Gabelli Global go up and down completely randomly.
Pair Corralation between Lkcm Aquinas and Gabelli Global
Assuming the 90 days horizon Lkcm Aquinas is expected to generate 10.01 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Lkcm Aquinas Catholic is 1.0 times less risky than Gabelli Global. It trades about 0.01 of its potential returns per unit of risk. Gabelli Global Financial is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,294 in Gabelli Global Financial on December 2, 2024 and sell it today you would earn a total of 391.00 from holding Gabelli Global Financial or generate 30.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lkcm Aquinas Catholic vs. Gabelli Global Financial
Performance |
Timeline |
Lkcm Aquinas Catholic |
Gabelli Global Financial |
Lkcm Aquinas and Gabelli Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lkcm Aquinas and Gabelli Global
The main advantage of trading using opposite Lkcm Aquinas and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Aquinas position performs unexpectedly, Gabelli Global 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 Global will offset losses from the drop in Gabelli Global's long position.Lkcm Aquinas vs. Angel Oak Ultrashort | Lkcm Aquinas vs. Delaware Investments Ultrashort | Lkcm Aquinas vs. T Rowe Price | Lkcm Aquinas vs. Transam Short Term Bond |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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