Correlation Between Gabelli Convertible and North Square

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

Diversification Opportunities for Gabelli Convertible and North Square

0.51

Correlation Coefficient

Gabelli Convertible  North Square

Very weak diversification

The 3 months correlation between Gabelli and North is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And and North Square Mckee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Mckee 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 North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Mckee has no effect on the direction of Gabelli Convertible i.e., Gabelli Convertible and North Square go up and down completely randomly.

Pair Corralation between Gabelli Convertible and North Square

If you would invest  376.00  in Gabelli Convertible And on December 2, 2024 and sell it today you would earn a total of  7.00  from holding Gabelli Convertible And or generate 1.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Gabelli Convertible And  vs.  North Square Mckee

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.

North Square Mckee

Risk-Adjusted Performance

Weak

Over the last 90 days North Square Mckee has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, North Square 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 North Square

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

The idea behind Gabelli Convertible And and North Square Mckee 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.