Correlation Between Gabelli Multimedia and Dividend

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

By analyzing existing cross correlation between The Gabelli Multimedia and Dividend 15 Split, you can compare the effects of market volatilities on Gabelli Multimedia and Dividend 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 Multimedia with a short position of Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Multimedia and Dividend.

Diversification Opportunities for Gabelli Multimedia and Dividend

-0.78

Correlation Coefficient

Gabelli Multimedia  Dividend

Pay attention - limited upside

The 3 months correlation between Gabelli and Dividend is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Multimedia and Dividend 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dividend 15 Split and Gabelli Multimedia 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 Multimedia are associated (or correlated) with Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dividend 15 Split has no effect on the direction of Gabelli Multimedia i.e., Gabelli Multimedia and Dividend go up and down completely randomly.

Pair Corralation between Gabelli Multimedia and Dividend

Assuming the 90 days trading horizon The Gabelli Multimedia is expected to generate 0.7 times more return on investment than Dividend. However, The Gabelli Multimedia is 1.43 times less risky than Dividend. It trades about 0.02 of its potential returns per unit of risk. Dividend 15 Split is currently generating about 0.01 per unit of risk. If you would invest  2,163  in The Gabelli Multimedia on October 3, 2024 and sell it today you would earn a total of  139.00  from holding The Gabelli Multimedia or generate 6.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.6%
Values	Daily Returns

The Gabelli Multimedia  vs.  Dividend 15 Split

The Gabelli Multimedia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Gabelli Multimedia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Gabelli Multimedia is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dividend 15 Split

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dividend 15 Split are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Dividend may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Gabelli Multimedia and Dividend

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

The idea behind The Gabelli Multimedia and Dividend 15 Split 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.