Correlation Between The Gabelli and Utilities Fund

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

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

Diversification Opportunities for The Gabelli and Utilities Fund

0.0

Correlation Coefficient

The Gabelli  Utilities Fund

Pay attention - limited upside

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

Pair Corralation between The Gabelli and Utilities Fund

If you would invest  1,520  in Utilities Fund Investor on October 9, 2024 and sell it today you would earn a total of  274.00  from holding Utilities Fund Investor or generate 18.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

The Gabelli Utilities  vs.  Utilities Fund Investor

Gabelli Utilities

Risk-Adjusted Performance

0 of 100

Very Weak

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

Utilities Fund Investor

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with The Gabelli and Utilities Fund

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

The idea behind The Gabelli Utilities and Utilities Fund Investor 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.