Correlation Between GAMCO Global and Abacus Life,

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

By analyzing existing cross correlation between GAMCO Global Gold and Abacus Life, 9875, you can compare the effects of market volatilities on GAMCO Global and Abacus Life, 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 GAMCO Global with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Abacus Life,.

Diversification Opportunities for GAMCO Global and Abacus Life,

-0.46

Correlation Coefficient

GAMCO Global  Abacus Life,

Very good diversification

The 3 months correlation between GAMCO and Abacus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and GAMCO Global 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 GAMCO Global Gold are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of GAMCO Global i.e., GAMCO Global and Abacus Life, go up and down completely randomly.

Pair Corralation between GAMCO Global and Abacus Life,

Assuming the 90 days trading horizon GAMCO Global Gold is expected to under-perform the Abacus Life,. But the preferred stock apears to be less risky and, when comparing its historical volatility, GAMCO Global Gold is 4.21 times less risky than Abacus Life,. The preferred stock trades about -0.15 of its potential returns per unit of risk. The Abacus Life, 9875 is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  2,690  in Abacus Life, 9875 on October 4, 2024 and sell it today you would earn a total of  676.00  from holding Abacus Life, 9875 or generate 25.13% return on investment over 90 days.

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

GAMCO Global Gold  vs.  Abacus Life, 9875

GAMCO Global Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMCO Global Gold has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Preferred Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Abacus Life, 9875

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Abacus Life, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GAMCO Global and Abacus Life,

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

The idea behind GAMCO Global Gold and Abacus Life, 9875 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.