Correlation Between Northern Institutional and Gamco Global

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

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

Diversification Opportunities for Northern Institutional and Gamco Global

0.0

Correlation Coefficient

Northern Institutional  Gamco Global

Pay attention - limited upside

The 3 months correlation between Northern and Gamco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Institutional Funds and Gamco Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Growth and Northern Institutional 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 Northern Institutional Funds 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 Growth has no effect on the direction of Northern Institutional i.e., Northern Institutional and Gamco Global go up and down completely randomly.

Pair Corralation between Northern Institutional and Gamco Global

If you would invest  100.00  in Northern Institutional Funds on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Northern Institutional Funds or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Northern Institutional Funds  vs.  Gamco Global Growth

Northern Institutional

Risk-Adjusted Performance

0 of 100

Very Weak

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

Gamco Global Growth

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Northern Institutional and Gamco Global

The main advantage of trading using opposite Northern Institutional and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Institutional 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 Northern Institutional Funds and Gamco Global Growth 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.