Correlation Between Gabelli Convertible and Munivest Fund

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

Diversification Opportunities for Gabelli Convertible and Munivest Fund

-0.1

Correlation Coefficient

Gabelli Convertible  Munivest Fund

Good diversification

The 3 months correlation between Gabelli and Munivest is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and Munivest Fund go up and down completely randomly.

Pair Corralation between Gabelli Convertible and Munivest Fund

Considering the 90-day investment horizon Gabelli Convertible And is expected to generate 1.74 times more return on investment than Munivest Fund. However, Gabelli Convertible is 1.74 times more volatile than Munivest Fund. It trades about 0.08 of its potential returns per unit of risk. Munivest Fund is currently generating about -0.26 per unit of risk. If you would invest  383.00  in Gabelli Convertible And on September 22, 2024 and sell it today you would earn a total of  7.00  from holding Gabelli Convertible And or generate 1.83% return on investment over 90 days.

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

Gabelli Convertible And  vs.  Munivest Fund

Gabelli Convertible And

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. 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.

Munivest Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Munivest Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Gabelli Convertible and Munivest Fund

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

The idea behind Gabelli Convertible And and Munivest Fund 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.

Check out your portfolio center.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.