Correlation Between Gabelli Growth and Allianzgi Vertible

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

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

Diversification Opportunities for Gabelli Growth and Allianzgi Vertible

0.93

Correlation Coefficient

Gabelli Growth  Allianzgi Vertible

Almost no diversification

The 3 months correlation between Gabelli and Allianzgi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Growth and Allianzgi Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Vertible and Gabelli Growth 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 The Gabelli Growth are associated (or correlated) with Allianzgi Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Vertible has no effect on the direction of Gabelli Growth i.e., Gabelli Growth and Allianzgi Vertible go up and down completely randomly.

Pair Corralation between Gabelli Growth and Allianzgi Vertible

Assuming the 90 days horizon The Gabelli Growth is expected to generate 1.72 times more return on investment than Allianzgi Vertible. However, Gabelli Growth is 1.72 times more volatile than Allianzgi Vertible Fund. It trades about 0.18 of its potential returns per unit of risk. Allianzgi Vertible Fund is currently generating about 0.31 per unit of risk. If you would invest  11,368  in The Gabelli Growth on September 12, 2024 and sell it today you would earn a total of  1,259  from holding The Gabelli Growth or generate 11.07% return on investment over 90 days.

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

The Gabelli Growth  vs.  Allianzgi Vertible Fund

Gabelli Growth

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Gabelli Growth are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Gabelli Growth may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Allianzgi Vertible

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Vertible Fund are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Vertible may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Gabelli Growth and Allianzgi Vertible

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

The idea behind The Gabelli Growth and Allianzgi Vertible 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.