Correlation Between Gabelli Convertible and Aperture Discover

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

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

Diversification Opportunities for Gabelli Convertible and Aperture Discover

0.25

Correlation Coefficient

Gabelli Convertible  Aperture Discover

Modest diversification

The 3 months correlation between Gabelli and Aperture is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Aperture Discover Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Discover Equity and Gabelli Convertible 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 Gabelli Convertible And are associated (or correlated) with Aperture Discover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Discover Equity has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Aperture Discover go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Aperture Discover

Considering the 90-day investment horizon Gabelli Convertible And is not expected to generate positive returns. However, Gabelli Convertible And is 1.17 times less risky than Aperture Discover. It waists most of its returns potential to compensate for thr risk taken. Aperture Discover is generating about 0.01 per unit of risk. If you would invest  1,142  in Aperture Discover Equity on October 27, 2024 and sell it today you would earn a total of  5.00  from holding Aperture Discover Equity or generate 0.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	23.48%
Values	Daily Returns

Gabelli Convertible And  vs.  Aperture Discover Equity

Gabelli Convertible And

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Gabelli Convertible may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Aperture Discover Equity

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Gabelli Convertible and Aperture Discover

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

The idea behind Gabelli Convertible And and Aperture Discover 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.