Correlation Between Gabelli Convertible and The Hartford

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

Diversification Opportunities for Gabelli Convertible and The Hartford

0.52

Correlation Coefficient

Gabelli Convertible  The Hartford

Very weak diversification

The 3 months correlation between Gabelli and The is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and The Hartford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Capital 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Capital has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and The Hartford go up and down completely randomly.

Pair Corralation between Gabelli Convertible and The Hartford

Considering the 90-day investment horizon Gabelli Convertible is expected to generate 2.48 times less return on investment than The Hartford. In addition to that, Gabelli Convertible is 1.26 times more volatile than The Hartford Capital. It trades about 0.02 of its total potential returns per unit of risk. The Hartford Capital is currently generating about 0.05 per unit of volatility. If you would invest  3,449  in The Hartford Capital on December 4, 2024 and sell it today you would earn a total of  725.00  from holding The Hartford Capital or generate 21.02% 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.  The Hartford Capital

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.

Hartford Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Hartford Capital has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Gabelli Convertible and The Hartford

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

The idea behind Gabelli Convertible And and The Hartford Capital 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.