Correlation Between Gabelli Money and Brandes Global

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

By analyzing existing cross correlation between The Gabelli Money and Brandes Global Equity, you can compare the effects of market volatilities on Gabelli Money and Brandes 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 Gabelli Money with a short position of Brandes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Money and Brandes Global.

Diversification Opportunities for Gabelli Money and Brandes Global

0.0

Correlation Coefficient

Gabelli Money  Brandes Global

Pay attention - limited upside

The 3 months correlation between Gabelli and Brandes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Money and Brandes Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Global Equity and Gabelli Money 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 The Gabelli Money are associated (or correlated) with Brandes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Global Equity has no effect on the direction of Gabelli Money i.e., Gabelli Money and Brandes Global go up and down completely randomly.

Pair Corralation between Gabelli Money and Brandes Global

If you would invest  2,885  in Brandes Global Equity on December 27, 2024 and sell it today you would earn a total of  267.00  from holding Brandes Global Equity or generate 9.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

The Gabelli Money  vs.  Brandes Global Equity

Gabelli Money

Risk-Adjusted Performance

Very Weak

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

Brandes Global Equity

Risk-Adjusted Performance

Good

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

Pair Trading with Gabelli Money and Brandes Global

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

The idea behind The Gabelli Money and Brandes Global Equity 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.