Correlation Between Gabelli Convertible and Fidelity Series

Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible and Fidelity Series 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 Fidelity Series 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 Fidelity Series International, you can compare the effects of market volatilities on Gabelli Convertible and Fidelity Series 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 Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Fidelity Series.

Diversification Opportunities for Gabelli Convertible and Fidelity Series

0.56

Correlation Coefficient

Gabelli Convertible  Fidelity Series

Very weak diversification

The 3 months correlation between Gabelli and Fidelity is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Fidelity Series International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Inte 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 Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Inte has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Fidelity Series go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Fidelity Series

Considering the 90-day investment horizon Gabelli Convertible And is expected to under-perform the Fidelity Series. In addition to that, Gabelli Convertible is 1.47 times more volatile than Fidelity Series International. It trades about -0.03 of its total potential returns per unit of risk. Fidelity Series International is currently generating about 0.15 per unit of volatility. If you would invest  1,247  in Fidelity Series International on December 4, 2024 and sell it today you would earn a total of  91.00  from holding Fidelity Series International or generate 7.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Gabelli Convertible And  vs.  Fidelity Series International

Gabelli Convertible And

Risk-Adjusted Performance

Very Weak

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

Fidelity Series Inte

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series International are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Series may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Gabelli Convertible and Fidelity Series

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

The idea behind Gabelli Convertible And and Fidelity Series International 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.