Correlation Between Artisan Global and Gamco Global

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

By analyzing existing cross correlation between Artisan Global Opportunities and Gamco Global Opportunity, you can compare the effects of market volatilities on Artisan Global and Gamco 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 Artisan Global with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Gamco Global.

Diversification Opportunities for Artisan Global and Gamco Global

-0.09

Correlation Coefficient

Artisan Global  Gamco Global

Good diversification

The 3 months correlation between Artisan and GAMCO is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Gamco Global Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Opportunity and Artisan Global 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 Artisan Global Opportunities are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Opportunity has no effect on the direction of Artisan Global i.e., Artisan Global and Gamco Global go up and down completely randomly.

Pair Corralation between Artisan Global and Gamco Global

Assuming the 90 days horizon Artisan Global Opportunities is expected to under-perform the Gamco Global. In addition to that, Artisan Global is 1.36 times more volatile than Gamco Global Opportunity. It trades about -0.05 of its total potential returns per unit of risk. Gamco Global Opportunity is currently generating about 0.19 per unit of volatility. If you would invest  1,137  in Gamco Global Opportunity on December 21, 2024 and sell it today you would earn a total of  109.00  from holding Gamco Global Opportunity or generate 9.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Artisan Global Opportunities  vs.  Gamco Global Opportunity

Artisan Global Oppor

Risk-Adjusted Performance

Very Weak

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

Gamco Global Opportunity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gamco Global Opportunity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gamco Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Artisan Global and Gamco Global

The main advantage of trading using opposite Artisan Global and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Gamco 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 Gamco Global will offset losses from the drop in Gamco Global's long position.

The idea behind Artisan Global Opportunities and Gamco Global Opportunity 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.