Correlation Between Gabelli Global and Blackstone Gso

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

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

Diversification Opportunities for Gabelli Global and Blackstone Gso

0.66

Correlation Coefficient

Gabelli Global  Blackstone Gso

Poor diversification

The 3 months correlation between Gabelli and Blackstone is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long and Gabelli 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 Gabelli Global Small are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of Gabelli Global i.e., Gabelli Global and Blackstone Gso go up and down completely randomly.

Pair Corralation between Gabelli Global and Blackstone Gso

Considering the 90-day investment horizon Gabelli Global is expected to generate 1.19 times less return on investment than Blackstone Gso. In addition to that, Gabelli Global is 1.52 times more volatile than Blackstone Gso Long. It trades about 0.04 of its total potential returns per unit of risk. Blackstone Gso Long is currently generating about 0.08 per unit of volatility. If you would invest  1,180  in Blackstone Gso Long on September 28, 2024 and sell it today you would earn a total of  88.00  from holding Blackstone Gso Long or generate 7.46% return on investment over 90 days.

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

Gabelli Global Small  vs.  Blackstone Gso Long

Gabelli Global Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gabelli Global Small has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Gabelli Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Blackstone Gso Long

Risk-Adjusted Performance

4 of 100

Modest

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

Pair Trading with Gabelli Global and Blackstone Gso

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

The idea behind Gabelli Global Small and Blackstone Gso Long 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.