Correlation Between Gamco Global and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Sitka 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 Gamco Global and Sitka Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Telecommunications and Sitka Gold Corp, you can compare the effects of market volatilities on Gamco Global and Sitka 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 Gamco Global with a short position of Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Sitka Gold.
Diversification Opportunities for Gamco Global and Sitka Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Sitka is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Telecommunication and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold Corp and Gamco 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 Gamco Global Telecommunications are associated (or correlated) with Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Gamco Global i.e., Gamco Global and Sitka Gold go up and down completely randomly.
Pair Corralation between Gamco Global and Sitka Gold
Assuming the 90 days horizon Gamco Global Telecommunications is expected to generate 0.18 times more return on investment than Sitka Gold. However, Gamco Global Telecommunications is 5.54 times less risky than Sitka Gold. It trades about -0.01 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 2,290 in Gamco Global Telecommunications on December 2, 2024 and sell it today you would lose (18.00) from holding Gamco Global Telecommunications or give up 0.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gamco Global Telecommunication vs. Sitka Gold Corp
Performance |
Timeline |
Gamco Global Telecom |
Sitka Gold Corp |
Gamco Global and Sitka Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gamco Global and Sitka Gold
The main advantage of trading using opposite Gamco Global and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Sitka 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 Sitka Gold will offset losses from the drop in Sitka Gold's long position.Gamco Global vs. T Rowe Price | Gamco Global vs. Rbb Fund Trust | Gamco Global vs. Barings Global Floating | Gamco Global vs. T Rowe Price |
Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |