Correlation Between GAMCO Global and Investec
Can any of the company-specific risk be diversified away by investing in both GAMCO Global and Investec 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 Investec 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 Investec Group, you can compare the effects of market volatilities on GAMCO Global and Investec 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 Investec. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Investec.
Diversification Opportunities for GAMCO Global and Investec
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GAMCO and Investec is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold and Investec Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Group 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 Investec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Group has no effect on the direction of GAMCO Global i.e., GAMCO Global and Investec go up and down completely randomly.
Pair Corralation between GAMCO Global and Investec
Assuming the 90 days trading horizon GAMCO Global is expected to generate 4.21 times less return on investment than Investec. In addition to that, GAMCO Global is 1.94 times more volatile than Investec Group. It trades about 0.01 of its total potential returns per unit of risk. Investec Group is currently generating about 0.1 per unit of volatility. If you would invest 978.00 in Investec Group on September 26, 2024 and sell it today you would earn a total of 126.00 from holding Investec Group or generate 12.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 93.27% |
Values | Daily Returns |
GAMCO Global Gold vs. Investec Group
Performance |
Timeline |
GAMCO Global Gold |
Investec Group |
GAMCO Global and Investec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GAMCO Global and Investec
The main advantage of trading using opposite GAMCO Global and Investec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global position performs unexpectedly, Investec 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 Investec will offset losses from the drop in Investec's long position.GAMCO Global vs. Bancroft Fund | GAMCO Global vs. GAMCO Natural Resources | GAMCO Global vs. The Gabelli Multimedia | GAMCO Global vs. The Gabelli Equity |
Investec vs. Beauty Health Co | Investec vs. Zhihu Inc ADR | Investec vs. Pinterest | Investec vs. Steven Madden |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Equity Valuation Check real value of public entities based on technical and fundamental data |