Correlation Between Gabelli Dividend and IHIT

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

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

Diversification Opportunities for Gabelli Dividend and IHIT

0.0

Correlation Coefficient

Gabelli Dividend  IHIT

Pay attention - limited upside

The 3 months correlation between Gabelli and IHIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Dividend Income and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT and Gabelli Dividend 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 Dividend Income are associated (or correlated) with IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Gabelli Dividend i.e., Gabelli Dividend and IHIT go up and down completely randomly.

Pair Corralation between Gabelli Dividend and IHIT

If you would invest  2,369  in Gabelli Dividend Income on December 28, 2024 and sell it today you would earn a total of  61.00  from holding Gabelli Dividend Income or generate 2.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gabelli Dividend Income  vs.  IHIT

Gabelli Dividend Income

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Dividend Income are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable fundamental indicators, Gabelli Dividend is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

IHIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days IHIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, IHIT is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Gabelli Dividend and IHIT

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

The idea behind Gabelli Dividend Income and IHIT 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.