Correlation Between Gabelli Money and Guidepath(r) Tactical

Can any of the company-specific risk be diversified away by investing in both Gabelli Money and Guidepath(r) Tactical 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 Guidepath(r) Tactical 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 Guidepath Tactical Allocation, you can compare the effects of market volatilities on Gabelli Money and Guidepath(r) Tactical 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 Guidepath(r) Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Money and Guidepath(r) Tactical.

Diversification Opportunities for Gabelli Money and Guidepath(r) Tactical

0.0

Correlation Coefficient

Gabelli Money  Guidepath(r) Tactical

Pay attention - limited upside

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

Pair Corralation between Gabelli Money and Guidepath(r) Tactical

Assuming the 90 days horizon The Gabelli Money is expected to generate 0.12 times more return on investment than Guidepath(r) Tactical. However, The Gabelli Money is 8.61 times less risky than Guidepath(r) Tactical. It trades about 0.13 of its potential returns per unit of risk. Guidepath Tactical Allocation is currently generating about -0.01 per unit of risk. If you would invest  98.00  in The Gabelli Money on October 4, 2024 and sell it today you would earn a total of  2.00  from holding The Gabelli Money or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.43%
Values	Daily Returns

The Gabelli Money  vs.  Guidepath Tactical Allocation

Gabelli Money

Risk-Adjusted Performance

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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.

Guidepath(r) Tactical

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Guidepath Tactical Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Gabelli Money and Guidepath(r) Tactical

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

The idea behind The Gabelli Money and Guidepath Tactical Allocation 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..