Correlation Between Gabelli Global and Brandywineglobal

Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Brandywineglobal 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 Brandywineglobal 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 Brandywineglobal Globalome Opportunities, you can compare the effects of market volatilities on Gabelli Global and Brandywineglobal 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 Brandywineglobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Brandywineglobal.

Diversification Opportunities for Gabelli Global and Brandywineglobal

-0.2

Correlation Coefficient

Gabelli Global  Brandywineglobal

Good diversification

The 3 months correlation between Gabelli and Brandywineglobal is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Small and Brandywineglobal Globalome Opp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywineglobal Glo 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 Brandywineglobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywineglobal Glo has no effect on the direction of Gabelli Global i.e., Gabelli Global and Brandywineglobal go up and down completely randomly.

Pair Corralation between Gabelli Global and Brandywineglobal

Considering the 90-day investment horizon Gabelli Global Small is expected to generate 1.37 times more return on investment than Brandywineglobal. However, Gabelli Global is 1.37 times more volatile than Brandywineglobal Globalome Opportunities. It trades about 0.19 of its potential returns per unit of risk. Brandywineglobal Globalome Opportunities is currently generating about 0.0 per unit of risk. If you would invest  1,179  in Gabelli Global Small on September 3, 2024 and sell it today you would earn a total of  126.00  from holding Gabelli Global Small or generate 10.69% return on investment over 90 days.

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

Gabelli Global Small  vs.  Brandywineglobal Globalome Opp

Gabelli Global Small

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Global Small are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Gabelli Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Brandywineglobal Glo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brandywineglobal Globalome Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Brandywineglobal is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Gabelli Global and Brandywineglobal

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

The idea behind Gabelli Global Small and Brandywineglobal Globalome Opportunities 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.